@techreport{3d78fd1cf7174e0cb246a92a9b185ffc,
title = "Public support for tax policies in COVID-19 times: Evidence from Luxembourg",
abstract = "We study attitudes towards the introduction of hypothetical new taxes to finance the cost of the COVID-19 pandemic. We rely on survey data collected in Luxembourg in 2020. The survey asks for the agreement of respondents over: a one-time net wealth tax, an inheritance tax, a temporary solidarity income tax, and a temporary increase in VAT. All questions include different and randomly assigned tax attributes (tax rates and exemption amounts). We find a clear divide with relativelyhigh support for new wealth and inheritance taxes on the one hand and a low support for increases in VAT and income taxes on the other hand. While 58% of respondents agree or strongly agree with a one-time tax levied on net worth, only24% are in favor of a small increase in VAT. Support for any tax is however negatively associated with the size of the tax as measured by the predicted revenues. Our results indicate that a one-time wealth tax could raise substantial revenues andstill garner public support.",
keywords = "COVID-19, wealth tax, income tax, VAT, preference for redistribution",
author = "Javier Olivera and {Van Kerm}, Philippe",
year = "2021",
month = nov,
day = "19",
language = "English",
series = "Working papers",
publisher = "LISER",
number = "2021-10",
address = "Luxembourg",
type = "WorkingPaper",
institution = "LISER",
}