From Communism to Capitalism Novokmet, Filip; Piketty, Thomas; Yang, Li ...
AEA papers and proceedings,
05/2018, Volume:
108
Journal Article
Peer reviewed
Open access
This paper combines national accounts, survey, wealth, and fiscal data (including recently released tax data on high-income taxpayers) in order to provide consistent series on the accumulation and ...distribution of income and wealth in China and Russia over the 1978-2015 period. We contrast the different privatization strategies implemented in the two countries and observe their impacts on the evolution of inequality.
We present new evidence on global inequality and growth since 1980 using the World and Wealth Income Database. We plot the curve of cumulated growth from 1980 to 2016 by percentile of the global ...distribution of income per adult. This curve has an elephant shape due to high growth rates at the median (fast growth in China and India), modest growth rates above the median, and explosive growth rates at the top. We project the evolution of global inequality between now and 2050 combining projected macro growth rates and within country inequality evolution based on past trends.
This paper reviews common challenges of taxing multinational firms, using Chile as a case study. We briefly describe key international tax avoidance methods: profit shifting to low-tax jurisdictions ...through transfer pricing and debt shifting. We discuss the prevalent policy to tax multinationals--the arm's length principle--and alternative proposals using apportionment formulas. Novel data from Chile show that multinationals make up a large share of GDP but report lower profit and effective tax rates than local firms. In 2011, Chile implemented a reform following OECD guidelines to enforce the arm's length principle. We discuss potential effects on tax collection and welfare.
En este documento, el ICRICT toma postura respecto del planteamiento de una reforma fiscal global, en el marco de las propuestas de la Organización para la Cooperación y el Desarrollo Económicos ...(OCDE) para gravar a las firmas multinacionales y las discusiones relacionadas del G20. En este sentido, la comisión enfatiza en la necesidad de un sistema fiscal internacional sostenible que, a largo plazo, beneficie tanto a las economías avanzadas como a las economías en desarrollo, que trate, asimismo, a las multinacionales como empresas únicas, con el fin de que, mediante una comunidad de Estados, se genere un marco para la tributación internacional más justa.
Recent estimates of US top wealth shares obtained by capitalizing income tax returns (Saez and Zucman, 2020; Smith, Zidar and Zwick, 2022) are close in both levels and trends except for the top 0.01% ...where a large discrepancy remains. We examine this difference and, using public data, quantify three main issues in Smith et al. (2022). First, Securities and Exchange Commission data at the shareholder firm level show that billionaires' equity wealth is underestimated by a factor of 2.1. Second, interest-bearing assets at the top are under-estimated by a factor of 1.6, because of an extrapolation from a small and unrepresentative sample of investment funds. We quantify this issue using mandatory filings of US hedge funds. Third, issues involving tiered partnerships and the measurement of business profits suggest that large S-corporations are undervalued by a factor of 1.2 and top-owned partnerships by up to 2.2. After incorporating these results, the top 0.01% wealth share of Smith et al. (2022) is close to the one found in Saez and Zucman (2020) and estimates of US wealth inequality are reconciled.
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