Séminaire BSE – programme 3
Guillaume Chapelle
THEMA, CY Cergy Paris Université and LIEPP, Sciences Po
How distortive is the Value Added Tax on Residential Investment
(joint with Alain Trannoy)
In an optimal taxation framework, we show that taxing investments might generate important distortions.
We then use a natural experiment to document the impact of a cut in the V.A.T on the production of dwellings.
Our results show that the V.A.T reduces significantly the production of new dwellings.
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