Modelling taxes on wealth

There are a number of models in use that analyse the distribution of household income but none that look at the distributional of household wealth. This means that distributional analysis of the effects of taxation and transfers of wealth is almost non-existent in the UK. Consequently it is difficult to answer important policy questions about the effects of wealth taxes and other measures to tackle wealth inequality.

The ippr is working with Landman Economics to investigate the feasibility of developing a model that can be used to estimate the distributional effects of wealth taxes. Such a model would complement ippr's existing tax-benefit model, which is capable of modelling changes to the personal tax and benefit system.