Title:
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Relocation of the rich: Migration in response to top tax rate changes from spanish reforms
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Author:
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Agrawal, David R.; Foremny, Dirk
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Other authors:
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Universitat de Barcelona |
Abstract:
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A Spanish reform granted regions the authority to set income tax rates, resulting in substantial tax differentials. Using administrative data, conditional on moving, taxes have a significant effect on location choice. A one percent increase in the net-of-tax rate for a region relative to others increases the probability of moving to that region by 1.7 percentage points. We estimate an elasticity of the number of top taxpayers with respect to net-of-tax rates of 0.85. The mechanical increase in tax revenue due to higher tax rates is larger than the loss in tax revenue from the net out-flow of migration. |
Subject(s):
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-Riquesa -Distribució (Teoria econòmica) -Política migratòria -Administració fiscal -Wealth -Distribution (Economic theory) -Migration policy -Tax administration and procedure |
Rights:
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(c) The MIT Press, 2019
info:eu-repo/semantics/embargoedAccess |
Document type:
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Article Article - Published version |
Published by:
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The MIT Press
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