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Karl, Schulz. (2021) Redistribution of Return Inequality.
In: CESifo Working Paper Series. RePEc:ces:ceswps:_8996.
Full description at Econpapers
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Figure 8: Left Panel: Response of Realized Capital Gains to Reform 2; Right Panel: Response of Capital Gains Tax Revenues to Reform 2 0 200 400 600 800 1000 -5.5 -5 -4.5 -4 -3.5 -3 -2.5 -2 0 200 400 600 800 1000 18 20 22 24 26 28 30 Figure 9: Left Panel: Response of Realized Capital Gains to Reform 3; Right Panel: Response of Capital Gains Tax Revenues to Reform 3 C A Dynamic Economy In this section, I incorporate scale dependence into the dynamic bequest taxation model of Piketty and Saez (2013) that can be interpreted as a theory of capital taxation. I show that the main results from the previous section carry over. I discuss the main differences arising from a fully dynamic setting relative to the conceptual framework of Section 2. Moreover, I derive the optimal tax in general equilibrium. Finally, I deal with the role of uncertainty, which is present in the financial market of Section E.
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