a european net wealth tax - arbeiterkammer · pdf filekrenek, schratzenstaller. gni. vat. tor....
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A EUROPEAN NET WEALTH TAX
Krenek, Schratzenstaller
GNI
VATTOR
EU-BUDGET
Competitiveness & Infrastructure
Cohesion
CAP
TOR
EU-BUDGETEU TAX
Competitiveness & Infrastructure
Cohesion
?
Green Taxes / Tariffs
Taxes on Wealth
...can not be enforcedon a national level effectively.
• Cross Border Externalities
• Mobile Tax Bases
• Tax Competition
EU
Tax Swap
NationalGreen Tax / Tariff Taxes on Labour
Taxes on WealthContributions
To social security
A EUROPEAN NET WEALTH TAX
Net Wealth Taxes abolished in:
• Ireland 1978• Austria 1994• Italy 1995• Denmark 1997• Germany 1997• The Netherlands 2001• Finland 2006• Luxembourg 2006• Iceland 2006• Sweden 2007
Why taxing wealth again?
Wealth inequality Valuation difficulties
“Ability-to-pay-principle“
Equality of opportunity
Top of growth-friendly hierarchy
High costs of tax collection
Issues of double taxation
Tax avoidance / wealth migration
Why taxing wealth again?
Wealth inequality Valuation difficulties
“Ability-to-pay-principle“
Equality of opportunity
Top of growth-friendly hierarchy
High costs of tax collection
Issues of double taxation
Tax avoidance / wealth migration
EU-Integration at a crossroads
Empirics
Household finance & consumption surveyTwo shortcomings:
Two weeks ago...
Kapeller et al. estimated thewealth distribution of Austria
Top 1% 40,5% HH wealth
What we did...
• Adjusting FA & LIAB to national balance sheets
• Observations from FORBES
• Estimating 𝜶𝜶 of Parameter pareto tail
• Estimating lower bound of pareto tail
• Artificial HH
Back of an envelope:
• Applying most extreme tax base elasticities
• Taxing HH wealth above 1Mio. € with 1%
• Taxing HH wealth above 5Mio. € with 1,5%
Tax revenue = 156 Billion €
Annual EU-Budget = 145 Billion €
Thank You