Monthly Archives: April 2014

The Generational Gap Tax: a paper by prof. Luciano Monti

DOWNLOAD: “Reinforcing Sustainability through the Generation Gap Tax” by Luciano Monti

We are used to link the policies addressed to young people together with education issues and policies. On the other hand, we are used to connect the value of redistribution with problems such as poverty, Third World and retirement funds, which are still very critical issues today.

However, the originality of the brief paper (6 pages)  we have uploaded on this page lies in the strong bond between these two matters: intergenerational gap and fiscal redistribution.

Prof. Luciano Monti (LUISS University) explains in a very concrete and impartial analysis that the welfare systems in Europe are not sustainable anymore, as they are creating a non-indifferent intergenerational gap. From this dilemma rises his proposal of a Generational Gap Tax (GGT) in Europe, based on three principles: 1) accompanying to adjustment, 2) support to the mitigation of the impact of the ecological footprint and 3) intergenerational distribution. The GGT is based on a progressive withdrawal, depending not only on the pension system contribution, but also on the year of entry into the pensioning period.

I really suggest to read this short but very helpful paper, and I thank professor Luciano Monti for forwarding it to Rethinking Economics Italia.

Nicolò Fraccaroli, Rethinking Economics

LUISS Guido Carli, Rome