Tax planning and inequality SA HANSSON Tax planning and inequality - - PowerPoint PPT Presentation

▶

Dec 16, 2023 7 likes •108 views

Tax planning and inequality SA HANSSON Tax planning and inequality To what extent? Scandinavia 1.6 % of wealth held in tax havens (3.3% world) The wealthiest that evade taxes, top 0.01% evades 25-30% of their taxes Are the

SLIDE 1

Tax planning and inequality

ÅSA HANSSON

SLIDE 2

Tax planning and inequality

To what extent?

– Scandinavia 1.6 % of wealth held in tax havens (3.3% world) – The wealthiest that evade taxes, top 0.01% evades 25-30%

f their taxes

– Are the measures overestimated? Lower taxes => capital growth

Inequality - increased?

– What is relevant? – amount of capital (stock) or income (return) to capital?

What caused the increase?

– Property and stock returns – linked to ownership and low interest rate – Wealth not realized, could very easily vanish

SLIDE 3

Revenue from wealth taxes as share of GDP

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 FRA GRB CAN BEL LUX KOR ISR ITA USA JAP ESP NZL ICE DEN CHE IRE TUR FIN NLD POR HUN NOR DEU SWE LAT CHL SVN AUT SVK CZE EST Property Wealth Inheritance Transfer Other

Källa: OECD Revenue Statistics

SLIDE 4

Gini-coefficients

0,0 0,2 0,4 0,6 0,8 1,0 2000 2002 2004 2006 2008 2010 2012 Ginikoefficient Förmögenhet Disponibel inkomst Arbetsinkomst

Källa: Lundberg och Waldenström (2017).

SLIDE 5

Capital share

10 20 30 40 1980 1985 1990 1995 2000 2005 2010 2015 Danmark Frankrike Sverige USA

Källa: Bengtsson och Waldenström (2017).

SLIDE 6

Tax planning and inequality – what to do?

The very wealthy that evades – this group also

the most sensitive to taxes. Should, according to optimal taxation, face lower tax rates

Increase exchange of information

– To be effective all nations need to participate and enforce rules – At a cost of large administration costs (e.g., FATCA)

Optimal punishment – “hanging taxpayers

with probability zero”

SLIDE 7

Tax planning

BEPS among MNEs: €50-70 billion in EU
VAT-tax gap: 12% (€151 billion) of VAT

revenues in EU27 are lost due to fraud, evasion and avoidance

Cost benefit analysis

– Capital mobility desirable – Tax planning undesirable Weigh the costs against the benefits?

SLIDE 8

SLIDE 9

Källa: Lundberg och Waldenström 2017

SLIDE 10

100 200 300 400 1980 1985 1990 1995 2000 2005 2010 2015 Nettoförmögenhet Icke-finansiella tillgångar Finansiella tillgångar Skulder

Källa: SCB och Waldenström (2016, 2017).