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Title: | Relocation of the rich: migration in response to top tax rate changes from Spanish reforms [WP] |
Author: | Agrawal, David R. Foremny, Dirk |
Keywords: | Riquesa Distribució (Teoria econòmica) Política migratòria Administració fiscal Wealth Distribution (Economic theory) Tax administration and procedure |
Issue Date: | 2018 |
Publisher: | Institut d’Economia de Barcelona |
Series/Report no: | [WP E-IEB18/06] |
Abstract: | A recent Spanish tax reform granted regions the authority to set income tax rates, resulting in substantial tax differentials. We use individual-level information from Social Security records over a period of one decade. Conditional on moving, taxes have a significant effect on location choice. A one percent increase in the net of tax rate for a region relative to others increases the probability of moving to that region by 1.7 percentage points. Focusing on the stock of top-taxpayers, we estimate an elasticity of the number of top taxpayers with respect to net-of-tax rates of 0.85. Using this elasticity, a theoretical model implies that the mechanical increase in tax revenue due to higher tax rates is larger than the loss in tax revenue from the out-flow of migration. |
Note: | Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions |
It is part of: | IEB Working Paper 2018/06 |
URI: | http://hdl.handle.net/2445/122681 |
Appears in Collections: | IEB (Institut d’Economia de Barcelona) – Working Papers |
Files in This Item:
File | Description | Size | Format | |
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IEB18-06_Agrawal+Foremny.pdf | 1.28 MB | Adobe PDF | View/Open |
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