A Note on the Cost of Collecting Wealth Taxes
14 Pages Posted: 21 Oct 2014 Last revised: 12 Nov 2014
Date Written: November 11, 2014
Abstract
We use a CAPM model to estimate the cost of collecting wealth taxes from private Norwegian owners. The cost consists of foregone investment opportunities due to higher required returns on equity. For listed firms, the cost is zero. For non-listed firms, it amounts to more than 250% of the tax revenue.
Keywords: wealth tax, risk-taking, cost, revenue
JEL Classification: G18, H25, M48
Suggested Citation: Suggested Citation
Johnsen, Thore and Lensberg, Terje, A Note on the Cost of Collecting Wealth Taxes (November 11, 2014). Available at SSRN: https://ssrn.com/abstract=2512663 or http://dx.doi.org/10.2139/ssrn.2512663
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