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Research Seminar in Economics: Almuth Scholl (Universität Konstanz)

21.04.2022 | 12:15 - 13:30

This paper studies the aggregate and distributional effects of raising the top marginal income tax rate in the presence of tax avoidance. To this end, we develop a quantitative macroeconomic model with heterogeneous agents and occupational choice in which entrepreneurs can avoid taxes in two ways. On the extensive margin, entrepreneurs can choose the legal form of their business organization to reduce their tax burden. On the intensive margin, entrepreneurs can shift their income between different tax bases. In a quantitative application to the US economy, we find that tax avoidance lowers productive efficiency and reduces the effectiveness of the top marginal tax rate at lowering inequality.

Prof. Dr. Almuth Scholl is Professor of Economics at the University of Konstanz. Her research focuses on macroeconomics with a special emphasis on fiscal policy, sovereign debt, and politico-economic aspects.

The presentation will be held on-site.