Does a progressive wealth tax reduce top wealth inequality? Evidence from Switzerland
OPEN ACCESS
Loading...
Author / Producer
Date
2023
Publication Type
Journal Article
ETH Bibliography
yes
Citations
Altmetric
OPEN ACCESS
Data
Rights / License
Abstract
Like in many other countries, wealth inequality has increased in Switzerland over the last 50 years. By providing new evidence on cantonal top wealth shares for each of the 26 cantons since 1969, we show that the overall trend masks striking differences across cantons, both in levels and trends. Combining this with variation in cantonal wealth taxes, we then estimate an event study model to identify the dynamic effects of reforms to top wealth tax rates on the subsequent evolution of wealth concentration. Our results imply that a reduction in the top marginal wealth tax rate by 0.1 percentage points increases the top 1 per cent (0.1 per cent) wealth share by 0.9 (1.2) percentage points 5 years after the reform. This suggests that wealth tax cuts over the last 50 years explain roughly 18 per cent (25 per cent) of the increase in wealth concentration among the top 1 per cent (0.1 per cent).
Permanent link
Publication status
published
External links
Editor
Book title
Journal / series
Volume
39 (3)
Pages / Article No.
513 - 529
Publisher
Oxford University Press
Event
Edition / version
Methods
Software
Geographic location
Date collected
Date created
Subject
inequality; wealth inequality; Wealth tax; Switzerland
Organisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
06338 - KOF FB KOF Lab / KOF FB KOF Lab
Notes
Funding
Related publications and datasets
Is new version of: https://doi.org/10.3929/ethz-b-000605613