Author: Naomi E. FeldmanPublisher:
ISBN:
Category :
Languages : en
Pages : 242
Book Description
Behavioral Responses in Taxation
Author: Naomi E. FeldmanBehavioral Responses to Tax Rates
Author: Martin S. FeldsteinPublisher:
ISBN:
Category : Capital gains tax
Languages : en
Pages : 12
Book Description
This paper uses the experience after the Tax Reform Act of 1986 to examine how taxes affect three aspects of individual taxpayer behavior: labor supply, total taxable income, and capital gains. The substantial sensitivity of married women's labor supply implies that the efficiency of the tax system could be increased significantly by reducing the marginal tax rates of these women relative to their husbands' marginal tax rates. More generally, the sensitivity of taxable income to the net of tax share implies that lower marginal tax rates would involve much less revenue loss than is traditionally assumed and would bring a much more substantial reduction in the deadweight loss of the tax system. The sharp fall in the real value of realized capital gains since the 1986 rise in tax rates on capital gains confirms earlier research indicating the substantial sensitivity of capital gains realizations to tax rates. A comparison with projections by the Treasury and Congressional Budget Office made in 1988 shows that the current official model greatly understates the sensitivity of capital gains to tax rates
Behavioral Responses to Taxes
Author: Jonathan BobBehavioral responses to tax rates
Author: Martin FeldsteinBehavioral Responses to Taxes - Essays on Tax Complexity and Individual Tax Compliance Behavior
Author: Daniela KühneLessons from Behavioral Responses to International Taxation
Author: James R. HinesPublisher:
ISBN:
Category : Foreign tax credit
Languages : en
Pages : 34
Book Description
Essays on Behavioral Responses to Taxation
Author: Robert Andrew WhittenPublisher:
ISBN:
Category : Economics
Languages : en
Pages : 394
Book Description
This dissertation consists of three chapters that explore behavioral responses to taxation. The first two chapters are largely empirical, drawing on administrative tax data to study income reporting decisions and withdrawals from Individual Retirement Accounts (IRAs). The third chapter is an exploration of optimal tax theory when markets are imperfectly competitive and consumers do not maximize their own utility.
A General Model of the Behavioral Response to Taxation
Author: Joel SlemrodPublisher:
ISBN:
Category : Economics
Languages : en
Pages : 15
Book Description
This paper generalizes the standard model of how taxes affect the labor-leisure choice by allowing individuals to change both their labor supply and avoidance effort in response to tax changes. Doing so reveals that both the income and substitution effect of taxes depend on both preferences and the avoidance technology, and econometric analysis will not in general allow one to separately identify the two influences, unless one can specify observable determinants of the cost of avoidance. The effective marginal tax rate on working must be modified by the addition of an avoidance-facilitating effect, which measures how much the cost of avoidance declines with higher true income. In an extreme case in which the cost of avoidance depends only on reported income, taxation has no compensated effect on labor supply regardless of preferences. This model provides a conceptual structure for evaluating to what extent, and in what situations, the opportunities for avoidance mitigate the real substitution response to tax reform
Behavioral Responses to State Income Taxation of High Earners
Author: Joshua RauhPublisher:
ISBN:
Category : Rich people
Languages : en
Pages : 74
Book Description
Drawing on the universe of California income tax filings and the variation imposed by a 2012 tax increase of up to 3 percentage points for high-income households, we present new findings about the effects of personal income taxation on household location choice and pre-tax income. First, over and above baseline rates of taxpayer departure from California, an additional 0.8% of the California residential tax filing base whose 2012 income would have been in the new top tax bracket moved out from full-year residency of California in 2013, mostly to states with zero income tax. Second, to identify the impact of the California tax policy shift on the pre-tax earnings of high-income California residents, we use as a control group high-earning out-of-state taxpayers who persistently file as California non-residents. Using a differences-in-differences strategy paired with propensity score matching, we estimate an intensive margin elasticity of 2013 income with respect to the marginal net-of-tax rate of 2.5 to 3.3. Among top-bracket California taxpayers, outward migration and behavioral responses by stayers together eroded 45.2% of the windfall tax revenues from the reform.
Equality and Efficiency REV
Author: Arthur M. OkunPublisher: Brookings Institution Press
ISBN: 0815726546
Category : Business & Economics
Languages : en
Pages : 171
Book Description
Originally published in 1975, Equality and Efficiency: The Big Tradeoff is a very personal work from one of the most important macroeconomists of the last hundred years. And this new edition includes "Further Thoughts on Equality and Efficiency," a paper published by the author two years later. In classrooms Arthur M. Okun may be best remembered for Okun's Law, but his lasting legacy is the respect and admiration he earned from economists, practitioners, and policymakers. Equality and Efficiency is the perfect embodiment of that legacy, valued both by professional economists and those readers with a keen interest in social policy. To his fellow economists, Okun presents messages, in the form of additional comments and select citations, in his footnotes. To all readers, Okun presents an engaging dual theme: the market needs a place, and the market needs to be kept in its place. As Okun puts it: Institutions in a capitalist democracy prod us to get ahead of our neighbors economically after telling us to stay in line socially. This double standard professes and pursues an egalitarian political and social system while simultaneously generating gaping disparities in economic well-being. Today, Okun's dual theme feels incredibly prescient as we grapple with the hot-button topic of income inequality. In his foreword, Lawrence H. Summers declares: On what one might think of as questions of "economic philosophy," I doubt that Okun has been improved on in the subsequent interval. His discussion of how societies rely on rights as well as markets should be required reading for all young economists who are enamored with market solutions to all problems. With a new foreword by Lawrence H. Summers