An analysis of constrained property taxes in a simple optimal tax model
We analyze an economy in which desirable land is inelastically supplied. A single government sets taxes on labor income, real property, and other commodities subject to the constraint that pure land rents and elastically supplied land development and structures are taxed at a common rate. The optima...
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Veröffentlicht in: | CESifo GmbH CESifo economic studies |
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Format: | UnknownFormat |
Sprache: | eng |
Veröffentlicht: |
2012
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Zusammenfassung: | We analyze an economy in which desirable land is inelastically supplied. A single government sets taxes on labor income, real property, and other commodities subject to the constraint that pure land rents and elastically supplied land development and structures are taxed at a common rate. The optimal property tax rate rises with the ratio of pure rents to structure and land development costs. Taxing non-housing commodities at a common rate is not optimal, even when their demand elasticities with respect to wages are identical. |
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Beschreibung: | graph. Darst., Tab. |
ISSN: | 1610-241X |