公共部门经济学(双语)_ch17.pptVIP

Chapter 17 Taxes on Wealth Property and Estates A Comprehensive Wealth Tax Base Real Property is property such as land and the structures on the land. Intangible Property is wealth that is held as paper or financial assets.? Personal Property is wealth that is held in the form of cars, furniture, clothing, jewelry, etc. Measuring Wealth Market value can be used to establish the value of most real property and intangible property, but personal property has no acceptable resale market. Serious inequities can arise from mismeasurement of wealth and serious shifting can take place when one form of wealth is taxed while another is not. Assessment of Property Value For the property tax, the assessed value of a home and the land upon which it sits is quite subjective. Real-estate markets exists for many homes but not others. A Comprehensive Wealth Tax Where Ri = the return to asset I r = the interest rate tW = the wealth tax rate W = Wealth Selective Property Taxes Property Taxes in the U.S. are typically selective in that real property is taxed, some forms of personal property are taxed, and intangible property is not taxed. Wealth Taxes in an Open Economy Capital mobility has increased dramatically in recent years. Wealth taxes in a nation discourage foreign investment in that nation. U.S. gross investment has declined from 22% of GNP in 1959 to 17% in 1999. U.S. net foreign investment is negative, meaning that foreign capitalists are investing more in the U.S. than U.S. capitalists are investing abroad. Local Property Taxes and Tax Capitalization Property Tax Differentials are the differences between what would be owed in one community on a particular piece of property relative to what would be owed on an identical piece of property in a different community. If the differential is high, then people will be willing to pay less for property in the high-tax community and more for a home in the low-tax community. The tax differential will be capitalized i