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.