Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective

In the spring of 2016, the tax-evasion revelations from the Panama Papers regarding the international clients of Mossack Fonseca shook the financial world. This article sheds light on whether taxing the rich will generate the tax-evasion effect, if the evasion behavior will affect the portfolio choi...

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Autores principales:	Kuo-Shing Chen, Huolien Tsai
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2018
Materias:	asset allocation cgarch model prospect theory panama papers tax evasion Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/aa4b2dfc4cf447048df1ea6eaaba99ba
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spelling	oai:doaj.org-article:aa4b2dfc4cf447048df1ea6eaaba99ba2021-12-02T10:44:31ZTaxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective2331-197510.1080/23311975.2018.1526362https://doaj.org/article/aa4b2dfc4cf447048df1ea6eaaba99ba2018-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2018.1526362https://doaj.org/toc/2331-1975In the spring of 2016, the tax-evasion revelations from the Panama Papers regarding the international clients of Mossack Fonseca shook the financial world. This article sheds light on whether taxing the rich will generate the tax-evasion effect, if the evasion behavior will affect the portfolio choice, and finally, the broader economic impacts of such tax evasion. The main insights are: (1) the evidence from the Panama Papers demonstrates that the supply of tax evasion services explains that evasion behavior rises steeply with wealth; (2) we also affirm that higher tax rates induce greater tax evasion activity and explain why the taxation system introduced by Hollande, which levied high tax on millionaires, failed in France; and (3) the primary components of billionaires’ asset allocation involve adequately weighting long-term stock holdings. Finally, these findings provide some evidence on the sustainability of taxing the rich and the sustainable investing behavior of the ultra-wealthy.Kuo-Shing ChenHuolien TsaiTaylor & Francis Grouparticleasset allocationcgarch modelprospect theorypanama paperstax evasionBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 5, Iss 1 (2018)
institution	DOAJ
collection	DOAJ
language	EN
topic	asset allocation cgarch model prospect theory panama papers tax evasion Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	asset allocation cgarch model prospect theory panama papers tax evasion Business HF5001-6182 Management. Industrial management HD28-70 Kuo-Shing Chen Huolien Tsai Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective
description	In the spring of 2016, the tax-evasion revelations from the Panama Papers regarding the international clients of Mossack Fonseca shook the financial world. This article sheds light on whether taxing the rich will generate the tax-evasion effect, if the evasion behavior will affect the portfolio choice, and finally, the broader economic impacts of such tax evasion. The main insights are: (1) the evidence from the Panama Papers demonstrates that the supply of tax evasion services explains that evasion behavior rises steeply with wealth; (2) we also affirm that higher tax rates induce greater tax evasion activity and explain why the taxation system introduced by Hollande, which levied high tax on millionaires, failed in France; and (3) the primary components of billionaires’ asset allocation involve adequately weighting long-term stock holdings. Finally, these findings provide some evidence on the sustainability of taxing the rich and the sustainable investing behavior of the ultra-wealthy.
format	article
author	Kuo-Shing Chen Huolien Tsai
author_facet	Kuo-Shing Chen Huolien Tsai
author_sort	Kuo-Shing Chen
title	Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective
title_short	Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective
title_full	Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective
title_fullStr	Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective
title_full_unstemmed	Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective
title_sort	taxing the rich policy, evasion behavior, and portfolio choice: a sustainability perspective
publisher	Taylor & Francis Group
publishDate	2018
url	https://doaj.org/article/aa4b2dfc4cf447048df1ea6eaaba99ba
work_keys_str_mv	AT kuoshingchen taxingtherichpolicyevasionbehaviorandportfoliochoiceasustainabilityperspective AT huolientsai taxingtherichpolicyevasionbehaviorandportfoliochoiceasustainabilityperspective
_version_	1718396783064776704

Taxing the rich policy, evasion behavior, and portfolio choice: A sustainability perspective

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