【學(xué)習(xí)】第六講-稅收與儲(chǔ)蓄-風(fēng)險(xiǎn)承擔(dān)和財(cái)富

1、第六講 稅收與儲(chǔ)蓄，風(fēng)險(xiǎn)承擔(dān)和財(cái)富整理課件2222.1 Taxation and SavingsTheory and Evidence Alternative Models of Savings22.3 Tax Incentives for Retirement Savings22.4 ConclusionTaxes on Savings整理課件22 Capital income taxation: The taxes levied on the returns from savings. This chapter explores:o How capital income taxation

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

3、onsumption over time. o 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整理課件Jacks Two-Period Savings Problem整理課件Jacks Two-Period Savings Problem整理課件AConsumptionwhi

4、le retiredin 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 )A Simplified Model整理課件Taxes and other price changes affect savings in two ways:oSubstitution effect: Lower aft

5、er-tax interest rates cause first-period consumption to rise, reducing savings. oIncome effect: Lower after-tax interest rates reduce the lifetime value of income, reducing first-period consumption and increasing savings. oSubstitution effects may seem more natural, but a “target savings” model gene

6、rates complete income effects. Substitution and Income Effects of Taxes on Savings整理課件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 Larger整理課件C R CW0ACBC1BC2IC1Y x (1 + r)Y x (1

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

8、the relevant interest rate. o 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 Aff

9、ect Savings?整理課件 The United States taxes nominal, not real, interest income.o Nominal interest rate: The interest rate earned by a given investment.o Real interest rate: The nominal interest rate minus the inflation rate; this measures an individuals actual improvement in purchasing power due to sav

10、ings. Inflation and Capital Taxation整理課件整理課件Inflation and Capital Taxation整理課件 The 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

11、uncertainties. Liquidity constraints make it harder to borrow in tight times, so people develop a “buffer stock.” Liquidity constraints: Barriers to credit availability that limit the ability of individuals to borrow.Precautionary Savings Models整理課件 Theory predicts that social insurance reduces prec

12、autionary savings. Chou et al. (2003) study the introduction of National Health Insurance (NHI) in Taiwan in 1995.o After NHI, savings fell among the publico But rose among people unaffected by NHI. In the United States, Medicaid expansions significantly reduced the savings of low-income groups. EVI

13、DENCE: Social Insurance and Personal Savings整理課件 Individuals may not be able to save as much as they would like because of self-control problems. Use of commitment devices is evidence for this model: o Christmas clubs, other traditional devices, “save more tomorrow plans.”o Keep money away from impa

14、tient “short-run self.” Rising credit card debt, rising housing wealth.Self-Control Models整理課件 Thaler and Benartzi (2004) run an experiment Subject: employees at a midsize manufacturing firm “save more tomorrow” planSelf-Control Models: Experimental Evidence整理課件 Employer contributions to pensions ar

15、e tax-deductible. Pension plan: An employer sponsored plan through which employers and employees 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: E

16、mployers set aside a certain proportion of a workers earnings in an investment account, and upon retirement, the worker receives the investment and any earnings.Tax Subsidy to Employer-Provided Pensions整理課件 401(k) accounts and IRAs also subsidize savings. 401(k) accounts: Tax-preferred retirement sa

17、vings vehicles offered by employers, to which employers will often match employees contributions. 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.Avai

18、lable Tax Subsidies for Retirement Savings整理課件For moderate income households, IRAs work 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

19、 contributions accumulates tax-free.Can withdrawal from 59.5; withdrawals have to start at age 70.IRA balances are taxed as income on withdrawal.Individual Retirement Accounts整理課件 With tax-preferred retirement savings, you get to hold on to any taxes you would have paid on both your initial contribu

20、tion and any interest earnings, And you get to earn the interest on the money that would have otherwise been paid in taxes.Why Do Tax Subsidies Raise the Return to Savings?整理課件Why Do Tax Subsidies Raise the Return to Savings?Account Type:RegularIRAEarningsTax on earningsInitial depositInterest earne

21、dTaxes at withdrawalNet amount withdrawn整理課件Theoretical Effects of Tax-Subsidized Retirement Savings整理課件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 Savings整理課件Limitations on Tax-Subsidized Re

22、tirement Savings整理課件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 Savers整理課件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-Subsi

23、dized Retirement Savings on High Savers整理課件 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:o Individuals contri

24、bute after-tax dollars to a Roth IRA, but make tax free withdrawals.o 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整理課件 Impact of tax subsidies for savings on nationa

25、l savings 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:o The size of the income and substitution effects for retirement savers below the savings limit.o The share of retirement savers

26、 who are above the savings limit, for whom there is only an inframarginal response.Private vs. National Savings整理課件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. dra

27、w that persons intertemporal budget constraint. B. draw that persons intertemporal budget constraint if the government taxes interest at the rate of 30%. 整理課件2323.1 Taxation and Risk Taking Capital Gains Taxation23.3 Transfer Taxation23.4 Property TaxationTaxes on Risk Taking and Wealth整理課件23 Warren

28、 Buffett plans 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 wea

29、lth and risk taking be taxed?Taxes on Risk Taking and Wealth整理課件How 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. o Tax loss offset: The extent to which taxpayers can de

30、duct net losses on investments from their taxable income. Overall, no clear prediction on how taxes affect risk taking, and little empirical evidence.Basic Financial Investment Model整理課件 Consider a $100 investment opportunity that pays out $120 half the time and $80 half the time. This has an expect

31、ed value of zero.o 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整理課件Some Taxes on Risk Taking Can Be UndoneNo TaxTaxLoss OffsetNo Loss OffsetProgressive TaxInve

32、stment$100100200200200Payoff 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整理課件 Taxes apply to capital gains as well as earned income. Capital gain: The difference between an assets purchase p

33、rice and its sale price. Currently, capital gains are taxed on realization. Interest income is taxed at accrual. o Taxation on accrual: Taxes paid each period on the return earned by an asset in that period.o Taxation on realization: Taxes paid on an assets return only when that asset is sold.Capita

34、l Gains Taxation整理課件Two large preferences for capital gains:“Step-Up” of Basis at Death: Assets transferred at death get a new basis, tax free.oBasis: 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

35、has traditionally featured an exclusion for capital gains on houses.Current Tax Treatment of Capital Gains整理課件Capital 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 i

36、ncome. 1993 : Raised 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整理課件 Protection against Inflationo Because of inflation, current tax p

37、olicy overstates the value of capital gains. o But better to index for inflation. Improved Efficiency of Capital Transactionso To reduce PDV of capital gains tax, individuals delay sale of assets.o But this reduces the fluidity of the capital market, and may hurt its performance.Arguments for Tax Pr

38、eferences for Capital Gains整理課件Arguments for Tax Preferences for Capital Gains Encouraging Entrepreneurial Activityo Entrepreneurs earn income by increasing the value of their companies, which is a capital gain.o Capital gains tax rates are a blunt instrument for encouraging entrepreneurship. Instea

39、d, use a prospective capital gains tax reduction.o Prospective capital gains tax reduction: Capital gains tax cuts that apply only to investments made from this day forward.整理課件Evidence on Taxation and Capital GainsHow does the capital gains tax rate affect capital gains? Key question in determining

40、 how capital gains should be taxed. In 1986, a capital gains tax increase was announced, to go into effect in 1987. Capital gains spiked in 1986 But didnt fall below their 1985 levels in 1987. The tax hike had no long-run effect on capital gains.整理課件Evidence on Taxation and Capital Gains整理課件1. Capit

41、al gains taxes are very progressive. oCapital gains income accrues primarily to the richest taxpayers in the United States.2. Lower tax rates on capital gains violate the Haig-Simons principle for tax systems. oThe goal of taxation should be to provide a level playing field across economic choices,

42、not to favor one choice over another, unless there is some equity or efficiency argument for doing so.What Are the Arguments against Tax Preferences for Capital Gains?整理課件 Republican presidential candidate Mitt Romney paid an average tax rate of 14% on $42 million of income in 2010 and 2011. His inc

43、ome was taxed as “carried 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 Gain

44、s Taxation of “Carried Interest”整理課件 Transfer taxes are an important capital tax in the United States.o Transfer tax: A tax levied on the transfer of assets from one individual to another.o Gift tax: A tax levied on assets that one individual gives to another in the form of a gift.o Estate tax: A ta

45、x levied on the assets of the deceased that are bequeathed to others.Transfer Taxation整理課件Transfer 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.

46、734.65.33OECD Average0.470.490.96整理課件Why 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

47、all motivation to work hard and achieve their own success.Why Tax Wealth? Arguments for the Estate Tax整理課件Why 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 earn it and then your children are taxed on it again when you die. Administrative Difficulties: To afford the tax, you may be force