Can Government Collect Resources Without Hurting Investors: Taxation of Returns From Assets
This paper presents the possibility that the government may be able to collect resources, without hurting investors, by introducing or changing taxes and subsidies on gains from different classes of financial assets. Our positive analysis is based on heterogeneous investors and an arbitrary number of asset classes. An example of the results, in the simple setting of one risky and one riskless asset, is that, under plausible conditions, the government's resources increase, without hurting investors, from a small tax on the return from the risky asset and a small subsidy on the riskless return. We describe several more general qualitative conclusions, and the economic forces underlying them.
|Date of creation:||Nov 2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://harrisschool.uchicago.edu/Email:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:har:wpaper:0127. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleanor Cartelli)The email address of this maintainer does not seem to be valid anymore. Please ask Eleanor Cartelli to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.