Behavioral Responses to Wealth Taxes: Evidence from Switzerland

Brülhart, Marius and Gruber, Jonathan and Krapf, Matthias and Schmidheiny, Kurt. (2022) Behavioral Responses to Wealth Taxes: Evidence from Switzerland. American Economic Journal: Economic Policy, 14 (4). pp. 111-150.

PDF - Published Version

Official URL: https://edoc.unibas.ch/90165/

Downloads: Statistics Overview


We study how declared wealth responds to changes in wealth tax rates. Exploiting rich intranational variation in Switzerland, we find a 1 percentage point drop in a canton's wealth tax rate raises reported taxable wealth by at least 43 percent after 6 years. Administrative tax records of two cantons with quasi-randomly assigned differential tax reforms suggest that 24 percent of the effect arises from taxpayer mobility and 21 percent from a concurrent rise in housing prices. Savings responses appear unable to explain more than a small fraction of the remainder, suggesting sizable evasion responses in this setting with no third-party reporting of financial wealth.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Angewandte Ökonometrie (Schmidheiny)
UniBasel Contributors:Krapf, Matthias and Schmidheiny, Kurt
Item Type:Article, refereed
Article Subtype:Research Article
Publisher:American Economic Association
Note:Publication type according to Uni Basel Research Database: Journal article
Identification Number:
edoc DOI:
Last Modified:31 Oct 2022 13:56
Deposited On:31 Oct 2022 13:56

Repository Staff Only: item control page