【教學(xué)】第六講-稅收與儲(chǔ)蓄-風(fēng)險(xiǎn)承擔(dān)和財(cái)富ppt課件

1、第六講 稅收與儲(chǔ)蓄，風(fēng)險(xiǎn)承當(dāng)和財(cái)富.2222.1 Taxation and SavingsTheory and Evidence22.2 Alternative Models of Savings22.3 Tax Incentives for Retirement Savings22.4 ConclusionTaxes on Savings.22 Capital income taxation: The taxes levied on the returns from savings. This chapter explores: How capital income taxation aff

2、ects behavior in theory and in practice. How capital income taxation works in the United States.Taxes on Savings.22.1 The intertemporal choice model is the main model for understanding how taxes affect savings. Intertemporal choice model: The choice individuals make about how to allocate their consu

3、mption over time. Savings: The excess of current income over current consumption. The model focuses on tradeoff between consumption today and consumption tomorrow.Taxation and Savings: Traditional Theory.22.1 Jack has income from working. Jack chooses how much to consume while working () and while r

4、etired (). Savingsis the difference between income and first-period consumption, Savings earns interest, and Jack consumes net savings: )Jacks Two-Period Savings Problem.22.1 Intertemporal budget constraint: The measure of the rate at which individuals can trade off consumption in one period for con

5、sumption in another period. The opportunity cost of one dollar of first period consumption is (1 + r) dollars of second period consumption. Taxes on savings affect behavior by changing the effective interest rate, shifting the budget constraint.Jacks Two-Period Savings Problem.AConsumptionwhile reti

6、redin period 2, C R Consumptionwhile workingin period 1, CW0BBudget constraint, BC1BC2Indifference curve, IC1Y x (1 + r)Y x (1 + r x 1 )S x (1 + r)SYSlope = (1 + r)Slope =(1 + r x 1 )22.1A Simplified Model.22.1Taxes and other price changes affect savings in two ways:Substitution effect: Lower after-

7、tax interest rates cause first-period consumption to rise, reducing savings. Income effect: Lower after-tax interest rates reduce the lifetime value of income, reducing first-period consumption and increasing savings. Substitution effects may seem more natural, but a “target savings model generates

8、complete income effects. Substitution and Income Effects of Taxes on Savings.C R CW0ABBC1BC2IC1Y x (1 + r)Y x (1 + r x 1 )S1 x (1 + r)S1YSlope = (1 + r)Slope =(1 + r x 1 )IC2S2S2 x (1 + r x 1 ) Effect of Taxes on Savings: Substitution Effect Is Larger22.1.C R CW0ACBC1BC2IC1Y x (1 + r)Y x (1 + r x 1

9、)S1 x (1 + r)S1YSlope = (1 + r)Slope =(1 + r x 1 )IC3S3S3 x (1 + r x 1 )22.1Effect of Taxes on Savings: Income Effect Is Larger.22.1 Evidence is ambiguous: either no impact or positive. Studying the connections between after-tax interest rates and savings is a difficult problem: Hard to measure the

10、relevant interest rate. Interest on any type of savings typically changes over time in the same way for all individuals, making it hard to find appropriate treatment and control groups for studying how savings respond to interest rate changes. Evidence: How Does the After-Tax Interest Rate Affect Sa

11、vings?.22.1 The United States taxes nominal, not real, interest income. Nominal interest rate: The interest rate earned by a given investment. Real interest rate: The nominal interest rate minus the inflation rate; this measures an individuals actual improvement in purchasing power due to savings. I

12、nflation and Capital Taxation.22.1 The relationship between real and nominal interest rates is: Inflation increases the nominal but not the real interest rate, but taxes are levied on nominal interest rates. Inflation reduces the real after-tax return on savings.Inflation and Capital Taxation.22.2 T

13、he traditional model assumes that people only save to smooth consumption, not to self-insure. Precautionary savings model: A model of savings in which individuals save, at least partly, to smooth consumption over future uncertainties. Liquidity constraints make it harder to borrow in tight times, so

14、 people develop a “buffer stock. Liquidity constraints: Barriers to credit availability that limit the ability of individuals to borrow.Precautionary Savings Models.22.2 Theory predicts that social insurance reduces precautionary savings. Chou et al. (2003) study the introduction of National Health

15、Insurance (NHI) in Taiwan in 1995. After NHI, savings fell among the public But rose among people unaffected by NHI. In the United States, Medicaid expansions significantly reduced the savings of low-income groups. EVIDENCE: Social Insurance and Personal Savings.22.2 Individuals may not be able to s

16、ave as much as they would like because of self-control problems. Use of commitment devices is evidence for this model: Christmas clubs, other traditional devices, “save more tomorrow plans. Keep money away from impatient “short-run self. Rising credit card debt, rising housing wealth.Self-Control Mo

17、dels. Thaler and Benartzi (2004) run an experiment Subject: employees at a midsize manufacturing firm “save more tomorrow planSelf-Control Models: Experimental Evidence.22.3 Employer contributions to pensions are tax-deductible. Pension plan: An employer sponsored plan through which employers and em

18、ployees save on a (generally) tax-free basis for the employees retirement. Defined benefit pension plans: Upon retirement, the workers benefit depends on tenure and earnings. Defined contribution pension plan: Employers set aside a certain proportion of a workers earnings in an investment account, a

19、nd upon retirement, the worker receives the investment and any earnings.Tax Subsidy to Employer-Provided Pensions.22.3 401(k) accounts and IRAs also subsidize savings. 401(k) accounts: Tax-preferred retirement savings vehicles offered by employers, to which employers will often match employees contr

20、ibutions. Individual Retirement Account (IRA): A tax-favored retirement savings vehicle primarily for low- and middle-income taxpayers, who make pre-tax contributions and are then taxed on future withdrawals.Available Tax Subsidies for Retirement Savings.22.3For moderate income households, IRAs work

21、 as follows:Almost any form of asset can be put in an IRA (from stocks to bonds to holdings of gold). Individuals can contribute up to $5,000 tax-free each year (deducted from their taxable income).Interest on IRA contributions accumulates tax-free.Can withdrawal from 59.5; withdrawals have to start

22、 at age 70.IRA balances are taxed as income on withdrawal.Individual Retirement Accounts.22.3 With tax-preferred retirement savings, you get to hold on to any taxes you would have paid on both your initial contribution and any interest earnings, And you get to earn the interest on the money that wou

23、ld have otherwise been paid in taxes.Why Do Tax Subsidies Raise the Return to Savings?.22.3Why Do Tax Subsidies Raise the Return to Savings?Account Type:RegularIRAEarningsTax on earningsInitial depositInterest earned1Taxes at withdrawalNet amount withdrawn.22.3Theoretical Effects of Tax-Subsidized R

24、etirement Savings Tax subsidies for retirement savings increase the after tax return to savings by reducing the tax rate from to . This can encourage savings through the substitution effect, or discourage it through the income effect. But IRA contributions are capped, so there is only an income effe

25、ct for high savers. High savers will just reshuffle their assets from non-IRA to IRA accounts.CBC R CWABC3BC2Y x (1 + r1-)Y x (1 + r x 1 )S4YSlope =(1 + r1-)S2S2 x (1 + r x 1 )Slope =(1 + r x 1 )S3?Theoretical Effects of Tax-Subsidized Retirement SavingsLimitations on Tax-Subsidized Retirem

26、ent Savings.AC R CWY x (1 + r x 1 )BC2BC1BC?YS3 = $500S1 = $1,000 S2 = $1,500slope =(1 + r x 1 ) slope =(1 + r x 1 ) Effect of Tax-Subsidized Retirement Savings for Low Savers22.3.AC R CWY x (1 + r x 1 )BC2BC1BYS1 = $6,000 S2 = $5,000slope =(1 + r x 1 ) slope =(1 + r x 1 ) Effect of Tax-Subsidized R

27、etirement Savings on High Savers Congress introduced the Roth IRA in 1997. Roth IRA: A variation on normal IRAs to which taxpayers make after-tax contributions but may then make tax-free withdrawals later in life. Similar to a regular IRA, but with two key differences: Individuals contribut

28、e after-tax dollars to a Roth IRA, but make tax free withdrawals. Individuals are never required to withdraw, so earnings on assets can build up tax-free indefinitely. Provides more generous tax subsidy than regular IRA.APPLICATION: The Roth IRA.22.3 Impact of tax subsidies for savings on national s

29、avings depends on the marginal and inframarginal responses. The size of the marginal and inframarginal response to tax incentives for savings will depend on two factors: The size of the income and substitution effects for retirement savers below the savings limit. The share of retirement savers who

30、are above the savings limit, for whom there is only an inframarginal response.Private vs. National Savings.Exercise Suppose that a person lives for two periods, earning $30,000 in income in period 1, during which she consumes or saves for period 2. what is saved earns interest of 10%. A. draw that p

31、ersons intertemporal budget constraint. B. draw that persons intertemporal budget constraint if the government taxes interest at the rate of 30%. .2323.1 Taxation and Risk Taking23.2 Capital Gains Taxation23.3 Transfer Taxation23.4 Property TaxationTaxes on Risk Taking and Wealth.23 Warren Buffett p

32、lans to give away 85% of his wealth to charity rather than bequeathing it to his own children. Buffet argues that enormous bequests spoil children. The estate tax preserves Americas meritocracy. Others oppose the estate tax because it constitutes double taxation. “death tax How should wealth and ris

33、k taking be taxed?Taxes on Risk Taking and Wealth.23.1How do takes on risk-taking affect behavior?Taxing wins, deducting losses doesnt affect behavior.But progressive taxes, or taxes without an offset for losses, do affect behavior. Tax loss offset: The extent to which taxpayers can deduct net losse

34、s on investments from their taxable income.Overall, no clear prediction on how taxes affect risk taking, and little empirical evidence.Basic Financial Investment Model.23.1 Consider a $100 investment opportunity that pays out $120 half the time and $80 half the time. This has an expected value of ze

35、ro. Expected return: The return to a successful investment times the odds of success, plus the return to an unsuccessful investment times the odds of failureBasic Financial Investment Model.23.1Some Taxes on Risk Taking Can Be UndoneNo TaxTaxLoss OffsetNo Loss OffsetProgressive TaxInvestment$1001002

36、00200200Payoff if win$2020404040Payoff if lose$2020404040Tax rate if win0%50%50%50%75%Loss deduction050%50%050%After tax gain$20$10$20$20$15After-tax loss$20$10$20$40$20.23.2 Taxes apply to capital gains as well as earned income. Capital gain: The difference between an assets purchase price and its

37、sale price. Currently, capital gains are taxed on realization. Interest income is taxed at accrual. Taxation on accrual: Taxes paid each period on the return earned by an asset in that period. Taxation on realization: Taxes paid on an assets return only when that asset is sold.Capital Gains Taxation

38、.23.2Two large preferences for capital gains:“Step-Up of Basis at Death: Assets transferred at death get a new basis, tax free.Basis: The purchase price of an asset, for purposes of determining capital gains. Exclusion for Capital Gains on Housing: The tax code in the United States has traditionally

39、 featured an exclusion for capital gains on houses.Current Tax Treatment of Capital Gains.23.2Capital gains taxed at a lower rate than earned income:19781986: Tax applied to only 40% of capital gains on assets held for more than six months.1986: Treated capital gains like all other income. 1993 : Ra

40、ised top tax rates on other forms of income to 39%, kept the top capital gains rate at 28%. 1997: Top rate on long-term capital gains fell to 20%2003: Top rate fell to 15%. Capital Gains Tax Rates through the Years.23.2 Protection against Inflation Because of inflation, current tax policy overstates

41、 the value of capital gains. But better to index for inflation. Improved Efficiency of Capital Transactions To reduce PDV of capital gains tax, individuals delay sale of assets. But this reduces the fluidity of the capital market, and may hurt its performance.Arguments for Tax Preferences for Capita

42、l Gains.Arguments for Tax Preferences for Capital Gains23.2 Encouraging Entrepreneurial Activity Entrepreneurs earn income by increasing the value of their companies, which is a capital gain. Capital gains tax rates are a blunt instrument for encouraging entrepreneurship. Instead, use a prospective

43、capital gains tax reduction. Prospective capital gains tax reduction: Capital gains tax cuts that apply only to investments made from this day forward.23.2Evidence on Taxation and Capital GainsHow does the capital gains tax rate affect capital gains?Key question in determining how capital gains shou

44、ld be taxed.In 1986, a capital gains tax increase was announced, to go into effect in 1987.Capital gains spiked in 1986But didnt fall below their 1985 levels in 1987.The tax hike had no long-run effect on capital gains.23.2Evidence on Taxation and Capital Gains.23.21. Capital gains taxes are very pr

45、ogressive. 2. Capital gains income accrues primarily to the richest taxpayers in the United States.3. Lower tax rates on capital gains violate the Haig-Simons principle for tax systems. 4. The goal of taxation should be to provide a level playing field across economic choices, not to favor one choic

46、e over another, unless there is some equity or efficiency argument for doing so.What Are the Arguments against Tax Preferences for Capital Gains?.23.2 Republican presidential candidate Mitt Romney paid an average tax rate of 14% on $42 million of income in 2021 and 2021. His income was taxed as “car

47、ried interest earned on the assets he managed at Bain Capital. Preferential treatment of “carried interest intended to compensate for high risk that asset managers face. But it is a violation of the Haig-Simons principle, and many economists oppose it.APPLICATION: Capital Gains Taxation of “Carried

48、Interest.23.3 Transfer taxes are an important capital tax in the United States. Transfer tax: A tax levied on the transfer of assets from one individual to another. Gift tax: A tax levied on assets that one individual gives to another in the form of a gift. Estate tax: A tax levied on the assets of

49、the deceased that are bequeathed to others.Transfer Taxation.23.3Transfer and Wealth Taxes (% of Government Revenue)Transfer TaxesWealth TaxesTransfer and Wealth TaxesAustralia0%0%0%United Kingdom0.6200.62United States0.8900.89Spain0.630.441.07France1.070.341.41Switzerland0.734.65.33OECD Average0.47

50、0.4Why tax wealth rather than income? Extremely progressive means of raising revenue.Necessary to avoid the excessive concentration of wealth and power in a few wealthy dynasties.Allowing children of wealthy families to inherit all their parents wealth saps them of all motivation to work hard and achieve their own success.Why Tax Wealth? Arguments for the Estate Tax.23.3Why not tax wealth?A “Death Tax Is Cruel: It is morally inappropriate to tax individuals upon their death.The Estate Tax Amounts to Double Taxation: You are taxed on income when you e