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blue-benjamin.bsky.social
@blue-benjamin.bsky.social
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voxeu.org
Fewer reporting requirements had large negative effects on French wealth tax compliance, w/ 35% of wealth taxpayers missing in affected brackets & evading 10% of payments each year.
@bgarbinti.bsky.social @s-stantcheva.bsky.social @gabrielzucman.bsky.social et al.
cepr.org/voxeu/column...
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Graph that shows bunching at the €2.57 million 2013 3rd tax bracket simplification threshold. Many countries are considering introducing or reforming their wealth tax policies. This column studies the effects of a French wealth tax reform, which reduced reporting requirements, on taxpayer behaviour. The scaling back of reporting requirements had large negative effects on tax compliance, with 35% of wealth taxpayers missing in affected brackets and evading 10% of their total wealth tax payments each year. The findings indicate that taxpayers are more likely to under-report the value of less easily verifiable assets such as housing, whereas financial assets are more transparent and thus harder to manipulate.
July 4, 2025 at 8:36 AM