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The end of bank secrecy: implications for redistribution and optimal taxation

Abstract:
This paper argues that the ability to enforce taxes on offshore income may shape the redistributional properties of the tax system through two channels. First, it mechanically raises tax progressivity for given parameters of the tax system because high-income taxpayers own most of the offshore wealth. In the US, recent comprehensive reporting by offshore banks suggests the mechanical increase in average tax rates may be around 1.5 percentage points for the top 0.01 per cent and virtually zero below the top 1 per cent. Second, it may further raise tax progressivity by changing the trade-offs underlying optimal taxation in favour of higher taxation of top incomes.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1093/oxrep/grad024

Authors


More by this author
Institution:
University of Oxford
Division:
SSD
Department:
Saïd Business School
Role:
Author
ORCID:
0000-0002-7850-2794


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Funder identifier:
https://ror.org/00znyv691


Publisher:
Oxford University Press
Journal:
Oxford Review of Economic Policy More from this journal
Volume:
39
Issue:
3
Pages:
565-574
Publication date:
2023-08-18
DOI:
EISSN:
1460-2121
ISSN:
0266-903X


Language:
English
Keywords:
Pubs id:
1931671
Local pid:
pubs:1931671
Deposit date:
2024-09-04

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