Do Mobile Pensioners Threaten the Deferred Taxation of Savings?

Research output: Contribution to journal › Article › Research › peer review

Authors

  • Volker Meier
  • Andreas Wagenery

Research Organisations

External Research Organisations

  • Ludwig-Maximilians-Universität München (LMU)
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Details

Original languageEnglish
Pages (from-to)465-483
Number of pages19
JournalCESifo economic studies
Volume61
Issue number2
Early online date31 May 2014
Publication statusPublished - Jun 2015

Abstract

We investigate optimal taxation of lifetime income with and without an option to emigrate during old age. The government sets the rates of deferred taxation and of taxes on interest income. With immobile agents, the optimal policy consists of full deferral of income taxes on savings and full taxation of interest. Potential mobility of the old calls for lower degrees of deferral and reduced taxation of interest. However, full immediate taxation of savings in combination with full tax exemption on interest income can never be optimal.

Keywords

    Deferred taxation, Income tax, Migration, Savings

ASJC Scopus subject areas

Cite this

Do Mobile Pensioners Threaten the Deferred Taxation of Savings? / Meier, Volker; Wagenery, Andreas.
In: CESifo economic studies, Vol. 61, No. 2, 06.2015, p. 465-483.

Research output: Contribution to journal › Article › Research › peer review

Meier V, Wagenery A. Do Mobile Pensioners Threaten the Deferred Taxation of Savings? CESifo economic studies. 2015 Jun;61(2):465-483. Epub 2014 May 31. doi: 10.1093/cesifo/ifu020
Meier, Volker ; Wagenery, Andreas. / Do Mobile Pensioners Threaten the Deferred Taxation of Savings?. In: CESifo economic studies. 2015 ; Vol. 61, No. 2. pp. 465-483.
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