Objective
The realization-based taxation of capital gains is often described as the Achilles’ heel of modern tax systems: it allows wealthy households and entrepreneurs to accumulate vast fortunes while deferring taxation, sometimes indefinitely or by emigrating abroad. This project studies two remedies to this weakness: accrual-based taxation and exit taxation. By combining Danish and French micro-level administrative data and frontier microeconometric methods, I aim to generate the first systematic evidence on taxpayers' response to accrual-based capital gains taxation and exit taxation. The results will have implications for how to tax capital gains in order to minimize economic distortions while reducing avoidance opportunities, raising revenue, and ultimately reducing inequality.
Part 1 examines the distortions created by accrual-based taxation and compares them to distortions under the default system, where gains are taxed upon realization. In accrual-based systems, gains are taxed annually regardless of whether assets are sold. This may generate liquidity constraints, forcing taxpayers to sell assets they would otherwise have retained in order to pay their tax liabilities. By contrast, realization-based systems create a lock-in effect, whereby investors retain appreciated assets to postpone tax liability, leading to inefficient portfolio allocation. Using Danish administrative data, I will present direct empirical evidence on the prevalence of both distortions.
Part 2 focuses on exit taxation, which levies taxes on accrued gains when taxpayers emigrate. By discouraging the emigration of wealthy households, exit taxation may protect the domestic tax base and support innovation and employment. Despite its substantial policy relevance, there is to date no empirical evidence on its impact. Leveraging French administrative data and the exit tax reforms of 2011 and 2014, I will estimate how exit taxation affects the semi-elasticity of migration with respect to taxation.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
- social sciences economics and business business and management entrepreneurship
- social sciences sociology governance taxation
- social sciences economics and business business and management employment
- social sciences sociology demography human migrations
You need to log in or register to use this function
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
-
HORIZON.1.2 - Marie Skłodowska-Curie Actions (MSCA)
MAIN PROGRAMME
See all projects funded under this programme
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-TMA-MSCA-PF-EF - HORIZON TMA MSCA Postdoctoral Fellowships - European Fellowships
See all projects funded under this funding scheme
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) HORIZON-MSCA-2025-PF
See all projects funded under this callCoordinator
Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
OX1 2JD Oxford
United Kingdom
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.