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Revenue and distributional modelling for a UK wealth tax
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Advani, Arun, Hughson, Helen and Tarrant, Hannah (2021) Revenue and distributional modelling for a UK wealth tax. Working Paper. Coventry: University of Warwick. Department of Economics. Warwick economics research papers series (WERPS) (1369). (Unpublished)
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Official URL: https://warwick.ac.uk/fac/soc/economics/research/w...
Abstract
In this paper we model the revenue that could be raised from an annual and a one-off wealth tax of the design recommended by Advani, Chamberlain and Summers (2020b). We examine the distributional effects of the tax, both in terms of wealth and other characteristics. We also estimate the share of taxpayers who would face liquidity constraints in meeting their tax liability. We find that an annual wealth tax charging 0.17% on wealth above £500,000 could generate £10 billion in revenue, before administrative costs. Alternatively, a one-off tax charging 4.8% (effectively 0.95% per year, paid over a five-year period) on wealth above the same threshold, would generate £250 billion in revenue. To put our revenue estimates into context, we present revenue estimates and costings for some commonly-proposed reforms to the existing set of taxes on capital.
Item Type: | Working or Discussion Paper (Working Paper) | ||||||||||||
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Subjects: | H Social Sciences > HJ Public Finance | ||||||||||||
Divisions: | Faculty of Social Sciences > Economics | ||||||||||||
Library of Congress Subject Headings (LCSH): | Wealth tax , Wealth tax -- Great Britain, Revenue , Revenue -- Great Britain, Capital levy, Capital levy -- Great Britain, Wealth tax -- Simulation methods | ||||||||||||
Series Name: | Warwick economics research papers series (WERPS) | ||||||||||||
Publisher: | University of Warwick. Department of Economics | ||||||||||||
Place of Publication: | Coventry | ||||||||||||
ISSN: | 0083-7350 | ||||||||||||
Official Date: | August 2021 | ||||||||||||
Dates: |
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Number: | 1369 | ||||||||||||
Institution: | University of Warwick | ||||||||||||
Status: | Not Peer Reviewed | ||||||||||||
Publication Status: | Unpublished | ||||||||||||
Access rights to Published version: | Open Access (Creative Commons) | ||||||||||||
Description: | This paper also appears as CAGE Discussion paper 578 |
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Date of first compliant deposit: | 12 March 2018 | ||||||||||||
Date of first compliant Open Access: | 12 March 2018 | ||||||||||||
RIOXX Funder/Project Grant: |
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