A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR....

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A EUROPEAN NET WEALTH TAX Krenek, Schratzenstaller

Transcript of A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR....

Page 1: A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR. EU-BUDGET. Competitiveness & Infrastructure. Cohesion. CAP. TOR. EU-BUDGET. EU

A EUROPEAN NET WEALTH TAX

Krenek, Schratzenstaller

Page 2: A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR. EU-BUDGET. Competitiveness & Infrastructure. Cohesion. CAP. TOR. EU-BUDGET. EU

GNI

VATTOR

EU-BUDGET

Competitiveness & Infrastructure

Cohesion

CAP

Page 3: A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR. EU-BUDGET. Competitiveness & Infrastructure. Cohesion. CAP. TOR. EU-BUDGET. EU

TOR

EU-BUDGETEU TAX

Competitiveness & Infrastructure

Cohesion

?

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Green Taxes / Tariffs

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Taxes on Wealth

Page 6: A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR. EU-BUDGET. Competitiveness & Infrastructure. Cohesion. CAP. TOR. EU-BUDGET. EU

...can not be enforcedon a national level effectively.

• Cross Border Externalities

• Mobile Tax Bases

• Tax Competition

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EU

Tax Swap

NationalGreen Tax / Tariff Taxes on Labour

Taxes on WealthContributions

To social security

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A EUROPEAN NET WEALTH TAX

Page 9: A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR. EU-BUDGET. Competitiveness & Infrastructure. Cohesion. CAP. TOR. EU-BUDGET. EU

Net Wealth Taxes abolished in:

• Ireland 1978• Austria 1994• Italy 1995• Denmark 1997• Germany 1997• The Netherlands 2001• Finland 2006• Luxembourg 2006• Iceland 2006• Sweden 2007

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Why taxing wealth again?

Wealth inequality Valuation difficulties

“Ability-to-pay-principle“

Equality of opportunity

Top of growth-friendly hierarchy

High costs of tax collection

Issues of double taxation

Tax avoidance / wealth migration

Page 11: A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR. EU-BUDGET. Competitiveness & Infrastructure. Cohesion. CAP. TOR. EU-BUDGET. EU

Why taxing wealth again?

Wealth inequality Valuation difficulties

“Ability-to-pay-principle“

Equality of opportunity

Top of growth-friendly hierarchy

High costs of tax collection

Issues of double taxation

Tax avoidance / wealth migration

Page 12: A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR. EU-BUDGET. Competitiveness & Infrastructure. Cohesion. CAP. TOR. EU-BUDGET. EU

EU-Integration at a crossroads

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Empirics

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Household finance & consumption surveyTwo shortcomings:

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Two weeks ago...

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Kapeller et al. estimated thewealth distribution of Austria

Top 1% 40,5% HH wealth

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What we did...

• Adjusting FA & LIAB to national balance sheets

• Observations from FORBES

• Estimating 𝜶𝜶 of Parameter pareto tail

• Estimating lower bound of pareto tail

• Artificial HH

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Page 20: A EUROPEAN NET WEALTH TAX - Arbeiterkammer · PDF fileKrenek, Schratzenstaller. GNI. VAT. TOR. EU-BUDGET. Competitiveness & Infrastructure. Cohesion. CAP. TOR. EU-BUDGET. EU

Back of an envelope:

• Applying most extreme tax base elasticities

• Taxing HH wealth above 1Mio. € with 1%

• Taxing HH wealth above 5Mio. € with 1,5%

Tax revenue = 156 Billion €

Annual EU-Budget = 145 Billion €

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Thank You