Optimal income taxation and migration

01 Pubblicazione su rivista
De Bonis Valeria, Spataro Luca
ISSN: 1573-6970

We tackle the issue of optimal dynamic taxation of capital income in an economy with disconnection a la Weil (1989) generated by migration and intra-family altruism. We show that, when the government aims at correcting such a disconnection using time varying weights in the social welfare function, then there is room for nonzero capital income taxation, both in the short and in the long run.

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