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Capital Levies: A Solution for the Sovereign Debt Problem?

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Speaker: Professor Daniel Shaviro, New York University
Event date: Thursday, 15 May 2014 06:00 pm - 08:00 pm
Place: Kirchberg Campus , salle Paul Feidert

The University of Luxembourg and the ATOZ Chair for European and International Taxation is pleased to invite you to two lectures on tax policy by Professor Daniel Shaviro from New York University. On 15 May Professor Shaviro will speak about a one-time capital levy, on 16 May he will give a presentation of his new book "Fixing U.S. International Taxation". Professor Shaviro is one of the most renowned experts on tax law and public policy in the world. With his many influential speeches and articles he shapes the design of modern US tax legislation.

Abstract

Last year’s IMF proposal featured a revival of interest in the use of capital levies – that is, one-off taxes on high-end private wealth – to pay down rising levels of sovereign debt.  The underlying idea is to kill three birds with one stone.  First, in economic theory, capital levies are perfectly efficient if no one either sees them coming or expects them to recur.  Second, capital levies may be one way to address growing wealth inequality and public dissatisfaction therewith, which is recognized as a significant trend that policymakers might want to address.  Third, capital levies may be able to alleviate widespread concern that some EU members’ high sovereign debt levels might lead to broader ills, such as national defaults, collapse of the Euro, high inflation, or  costly bailouts by better-financed countries.

In his talk, Professor Shaviro will address two main questions. First, can capital levies be introduced without having distortive effects? And second, to what extent the latter two concerns are appropriately addressed through capital levies. 

After his speech, Professor Shaviro will discuss his ideas with members of the economic and law department of the University of Luxembourg.

Data: Invitation_15 May 2014_ Lecture by Prof. Daniel Shaviro.pdf 178.08 kB