Falling inequality and the growing capital income share: Reconciling divergent trends in survey and tax data

2022 ◽  
Vol 152 ◽  
pp. 105783
Author(s):  
Gabriel Burdín ◽  
Mauricio De Rosa ◽  
Andrea Vigorito ◽  
Joan Vilá
Keyword(s):  
Capital Income ◽  
Income Share

scholarly journals The Top 1 Percent in International and Historical Perspective

2013 ◽  
Vol 27 (3) ◽  
pp. 3-20 ◽  
Author(s):  
Facundo Alvaredo ◽  
Anthony B Atkinson ◽  
Thomas Piketty ◽  
Emmanuel Saez
Keyword(s):  
United States ◽  
New Technologies ◽  
The United States ◽  
High Income ◽  
Capital Income ◽  
Public Attention ◽  
Income Share ◽  
Top Income Shares ◽  
The Impact ◽  
Over Time

The top 1 percent income share has more than doubled in the United States over the last 30 years, drawing much public attention in recent years. While other English-speaking countries have also experienced sharp increases in the top 1 percent income share, many high-income countries such as Japan, France, or Germany have seen much less increase in top income shares. Hence, the explanation cannot rely solely on forces common to advanced countries, such as the impact of new technologies and globalization on the supply and demand for skills. Moreover, the explanations have to accommodate the falls in top income shares earlier in the twentieth century experienced in virtually all high-income countries. We highlight four main factors. The first is the impact of tax policy, which has varied over time and differs across countries. Top tax rates have moved in the opposite direction from top income shares. The effects of top rate cuts can operate in conjunction with other mechanisms. The second factor is a richer view of the labor market, where we contrast the standard supply-side model with one where pay is determined by bargaining and the reactions to top rate cuts may lead simply to a redistribution of surplus. Indeed, top rate cuts may lead managerial energies to be diverted to increasing their remuneration at the expense of enterprise growth and employment. The third factor is capital income. Overall, private wealth (relative to income) has followed a U-shaped path over time, particularly in Europe, where inherited wealth is, in Europe if not in the United States, making a return. The fourth, little investigated, element is the correlation between earned income and capital income, which has substantially increased in recent decades in the United States.

scholarly journals Simplified Distributional National Accounts

2019 ◽  
Vol 109 ◽  
pp. 289-295
Author(s):  
Thomas Piketty ◽  
Emmanuel Saez ◽  
Gabriel Zucman
Keyword(s):  
National Income ◽  
Pension Funds ◽  
Labor Income ◽  
National Accounts ◽  
Capital Income ◽  
Income Share ◽  
Basic Assumptions ◽  
Income Groups

This paper develops a simplified methodology to distribute total national income across income groups that reproduces closely the sophisticated methodology of Piketty, Saez, and Zucman (2018). It starts from top income share series based on fiscal income of Piketty and Saez (2003) and makes two basic assumptions on how national income components not included in fiscal income are distributed: (1) nontaxable labor income and capital income from pension funds are distributed like taxable labor income; (2) other nontaxable capital income is distributed like taxable capital income. This methodology could be applied to countries with less data.

Hungarian small business tax and possibilities to minimize distortions from capital income taxation

2015 ◽  
Vol 37 (s1) ◽  
pp. 87-105
Author(s):  
Benedek Nobilis ◽  
András Svraka
Keyword(s):  
Small Business ◽  
Cash Flow ◽  
Capital Accumulation ◽  
Value Added ◽  
Regulatory Elements ◽  
Capital Income ◽  
Potential Growth ◽  
Elegant Method ◽  
Business Tax ◽  
Working Out

Governments throughout the EU and OECD countries rely on revenues raised on capital income. Albeit several arguments can be made for keeping these taxes, in their widespread form they hinder capital accumulation and significantly lower potential growth due to their savings and investment distorting nature. At the same time, the actual economic impact of tax types is largely influenced by their structure. An elegant method, which is also simple in its concept, for eliminating the economic distortions of profit taxes is cash-flow taxation which moves income taxes closer to the more growth-friendly value-added taxes. The small business tax, which was introduced in Hungary in 2013, was designed along these principles. In this paper we review the theoretical literature on cash-flow taxation and discuss the main regulatory elements of the small business tax, as well as the solutions elaborated for working out the challenges related to its implementation.

La olla, la fuente y el plato. Distintas maneras de compartir en Argentina

STUDIUM ◽  
2018 ◽  
pp. 189-208
Author(s):  
Patricia Aguirre
Keyword(s):  
Key Words ◽  
Income Share ◽  
The Past ◽  
Palabras Clave

El siguiente artículo ejemplifica con tres elementos del servicio de mesa (la olla, la fuente y el plato) las formas características en que se despliega la comensalidad en diferentes sectores de ingresos, sexos y edades, en Argentina. Diferencia las prácticas, los actores y los sentidos ligados al repartir y al compartir, en cada sector, señalando que el reparto es una obligación ligada a las jerarquías mientras que compartir es una elección libre y afectuosa basada en la amistad y la confianza de la cual se espera reciprocidad. Se señala que tal como muestran el asado y el mate en el pasado, se puede compartir tanto con el alimento más prestigioso (la carne asada) como sin comida: en la ronda del mate. Palabras clave: Comensalidad, ingresos, compartir, repartir, representaciones   Abstract Through the pot, the platter and the dish —three objects used at meal times— this article exemplifies typical ways of commensality in Argentina, among groups whose income, sex, and age differ. The article points to the differences between practices, actors, and senses involved in distributing and sharing in each sector. It shows that distribution is an obligation related to hierarchy, whereas sharing is a free, loving decision based on trust and friendship and that reciprocity is expected. As shown by asado and mate in the past, it is possible to share regardless of what is being shared. In the example, asado stands for prestigious meat done on a charcoal grill, whereas the mate circle is not about food. Key words: commensality, income, share, distribute, representations

Taxation of capital income in Austria, Germany and Switzerland

2006 ◽  
Author(s):  
André Bauer ◽  
Deborah Knirsch Schanz ◽  
Sebastian Schanz
Keyword(s):  
Capital Income
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