From David Seim:
This paper addresses the behavioral effects of an annual wealth tax. I use Swedish tax records over the period 2000-2006 to estimate bunching at kink points in the pro- gressive tax schedule and find significant estimates of the implied elasticity of taxable net wealth in the range [0.1,0.3]. I decompose the effects into a reporting response and a real saving response. Using asset-level data on the portfolio of each resident in Sweden, I disentangle active changes (savings) in the portfolio from passive (capital gains and losses) movements. Exploiting features of the institutional setting, I find that an increase in the tax is likely to stimulate evasion rather than deter savings.