Alleged tax competition: The mysterious death of inheritance taxes in Switzerland

Details

Serval ID
serval:BIB_2F624573EA8A
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Alleged tax competition: The mysterious death of inheritance taxes in Switzerland
Journal
Journal of Public Economics
Author(s)
Brülhart  M., Parchet  R.
ISSN
0047-2727
Publication state
Published
Issued date
03/2014
Peer-reviewed
Oui
Volume
111
Pages
63-78
Language
english
Abstract
Interjurisdictional competition over mobile tax bases is an easily understood mechanism, but actual tax-base
elasticities are difficult to estimate. Political pressure for reducing tax rates could therefore be based on erroneous estimates of the mobility of tax bases. We show that tax competition provided the most prominent argument in the policy debates leading to a succession of reforms of bequest taxation bySwiss cantons. Yet, canton-level panel data spanning multiple bequest tax reforms over a 36-year period suggest the relevant tax base, high-income retirees, to be relatively inelastic with respect to tax rates. The alleged pressures of tax competition did not seem in reality to exist.
Keywords
Tax competition, bequest taxation, fiscal federalism
Web of science
Create date
05/12/2013 14:53
Last modification date
21/08/2019 5:17
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