We study the optimal tax system in a dynamic model where di¤erences in wages induce di¤erences in inheritances, and the transition from parent ability to child ability is described by a Markov chain. In accordance with empirical evidence, we assume that in any generation more able individuals...

Property tax is a crucial part of tax policy, and it also plays an important role in regulating household consumption. In order to objectively evaluate the impact of property tax on household consumption, this paper redefines the statistical measures of residents’ burden of property tax, and...