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Tax Design, Information, and Elasticities: Evidence From the French Wealth Tax / Bertrand Garbinti, Jonathan Goupille-Lebret, Mathilde Muñoz, Stefanie Stantcheva, Gabriel Zucman.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Garbinti, Bertrand.
Contributor:
National Bureau of Economic Research.
Goupille-Lebret, Jonathan.
Muñoz, Mathilde.
Stantcheva, Stefanie.
Zucman, Gabriel.
Series:
Working Paper Series (National Bureau of Economic Research) no. w31333.
NBER working paper series no. w31333
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2023.
Summary:
We study a French wealth tax reform that starkly reduced the information some taxpayers must report to the tax authority. Using a new dynamic bunching approach we estimate the average response to the reform, the share of compliers, and the local average treatment effect. The annual wealth growth rate of treated taxpayers falls by 0.5 percentage points after the reform. This decline is likely due to increased evasion, as suggested by the sharp responses in self-reported wealth but not in third-party-reported incomes. The wealth tax base becomes more elastic post reform, illustrating the key role of information policy choices for tax base elasticities.
Notes:
Print version record
June 2023.

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