DOWNLOAD: “Reinforcing Sustainability through the Generation Gap Tax” by Luciano Monti
We are used to linking policies addressed to young people together with education issues and policies. On the other hand, we are used to connecting 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 specific 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 suggest you read this short, yet helpful paper, and I thank professor Luciano Monti for forwarding it to Rethinking Economics Italia.