23:54
"Second, our estimates capture the effect of wealth taxes conditional on staying in Denmark. In
other words, we do not consider the potential migration response to wealth taxes at the top. While
there some evidence on migration responses to labor income taxes at the top (see Kleven et al.
2011a, 2014; Akcigit et al. 2016), there is virtually no evidence on migration responses to capital
or wealth taxes.39 Such responses are difficult to study due to lack of statistical power: we are
studying the extreme tail of the wealth distribution, and given the low frequencies of international
migration, very few individuals are moving country from year to year. Furthermore, moving to
another country is arguably not the most natural response to wealth taxes. Because capital tends
to be more mobile than people, it would be more natural to move wealth across borders (which
would be picked up by our taxable wealth estimates) than to move the household across borders."
