Capital (Income) Tax Reform

Activity: Talk or presentation typesOral presentationProfessional

Description

The government in the Netherlands will convert the current capital income tax scheme that taxes wealth to a scheme that taxes capital income. A well-known result from economic theory is that such a reform may be welfare-improving as taxing capital income implies a reduction of private risks. We argue that this is generally true, but also point to a possible downside of the reform: low wealth households may suffer from increased income volatility.
Period1 Nov 2023
Held atFiscal Institute Tilburg (FIT)