IFS Working Paper (W16/07)

Taxing high-income earners: tax avoidance and mobility

Date: 22 April 2016
Publisher: IFS
DOI: 10.1920/wp.ifs.2016.1607

The taxation of high-income earners is of importance to every country and is the subject of a considerable amount of recent academic research. Such high-income earners contribute substantial amounts of tax and generate signifi cant positive spillovers, but are also highly mobile: a 1% increase in the top marginal income tax rate increases out-migrations by around 1.5 to 3%. We review research into taxation of high-income earners to provide a synthesis of existing theoretical and empirical understanding. We o ffer various avenues for potential future theoretical and empirical research.