Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Estimating Taxable Income Responses With Elasticity Heterogeneity
Download Estimating Taxable Income Responses With Elasticity Heterogeneity full books in PDF, epub, and Kindle. Read online Estimating Taxable Income Responses With Elasticity Heterogeneity ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Estimating Taxable Income Responses with Elasticity Heterogeneity by : Anil Kumar
Download or read book Estimating Taxable Income Responses with Elasticity Heterogeneity written by Anil Kumar and published by . This book was released on 2017 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We explore the implications of heterogeneity in the elasticity of taxable income (ETI) for tax-reform based estimation methods. We theoretically show that existing methods yield elasticities that are biased and lack policy relevance. We illustrate the empirical importance of our theoretical analysis using the NBER tax panel for 1979-1990. We show that elasticity heterogeneity is the main explanation for large differences between estimates in the previous literature. Our preferred, newly suggested method yields elasticity estimates of approximately 0.7 for taxable income and 0.2 for broad income.
Book Synopsis The Elasticity of Taxable Income by : Creedy, John
Download or read book The Elasticity of Taxable Income written by Creedy, John and published by Edward Elgar Publishing. This book was released on 2022-04-21 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: This timely book analyses the elasticity of taxable income, a central concept in public finance with a rapidly growing wealth of literature. Combining original empirical research with rigorous theoretical modelling of tax revenue and optimal tax policy, this innovative study examines the complexities and new methods of estimating the elasticity of taxable income.
Book Synopsis Estimating the Elasticity of Taxable Income when Earnings Responses are Sluggish by : Trine Engh Vattø
Download or read book Estimating the Elasticity of Taxable Income when Earnings Responses are Sluggish written by Trine Engh Vattø and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Estimates of the elasticity of taxable income (ETI) is conventionally obtained by "stacking" three-year overlapping differences in the estimation. In effect, this means that the ETI estimate is an average of first-, second-, and third-year effects. The present paper draws attention to this implication and suggests that if there is gradual adjustment the analyst should rather estimate the ETI by a dynamic panel data model. When using Norwegian income tax return data for wage earners over a 14-year period (1995-2008) in the estimation, an ETI estimate of 0.15 is obtained from the dynamic specification, compared to 0.11 for the conventional approach. Importantly, the conventional approach fails to render a long-term elasticity estimate by increasing the time span of each difference.
Book Synopsis The Bunching Estimator Cannot Identify the Taxable Income Elasticity by : Nils Sören Blomquist
Download or read book The Bunching Estimator Cannot Identify the Taxable Income Elasticity written by Nils Sören Blomquist and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: If one is willing to assume restrictions on the heterogeneity density some information about the taxable income elasticity can be obtained. We give bounds on the taxable income elasticity based on monotonicity of the heterogeneity density and apply these bounds in an example.
Book Synopsis Estimating Taxable Income Responses Using Danish Tax Reforms by : Henrik Jacobsen Kleven
Download or read book Estimating Taxable Income Responses Using Danish Tax Reforms written by Henrik Jacobsen Kleven and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis On Bunching and Identification of the Taxable Income Elasticity by : Sören Blomquist
Download or read book On Bunching and Identification of the Taxable Income Elasticity written by Sören Blomquist and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The taxable income elasticity is a key parameter for predicting the effect of tax reform or designing an income tax. Bunching at kinks and notches in a single budget set have been used to estimate the taxable income elasticity. We show that when the heterogeneity distribution is unrestricted the amount of bunching at a kink or a notch is not informative about the size of the taxable income elasticity, and neither is the entire distribution of taxable income for a convex budget set. Kinks do provide information about the size of the elasticity when a priori restrictions are placed on the heterogeneity distribution. They can identify the elasticity when the heterogeneity distribution is specified across the kink and provide bounds under restrictions on the heterogeneity distribution. We also show that variation in budget sets can identify the taxable income elasticity when the distribution of preferences is unrestricted and stable across budget sets. For nonparametric utility with general heterogeneity we show that kinks only provide elasticity information about individuals at the kink and we give bounds analogous to those for isoelastic utility. Identification becomes more difficult with optimization errors We show in examples how results are affected by optimization errors.
Book Synopsis Elasticity of Taxable Income by : Kamila Kaucká
Download or read book Elasticity of Taxable Income written by Kamila Kaucká and published by LAP Lambert Academic Publishing. This book was released on 2011-04 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tax rate change influences taxpayers' behavior and hence taxable income and tax revenue of the state budget. Any such change can affect declared taxable income through its effect on quality or quantity of labor supply, savings, portfolio decisions, tax avoidance by legal means or illegal tax evasion. In this work I focus on elasticity of taxable income as an estimate of these behavioral responses to a (personal income) tax rate change. First, I summarize theoretical background and fundamental analyses dealing with elasticity of taxable income. Further, I describe one of the methods, and its constraints, used for in empirical work on elasticity estimation known as difference-in-differences." I apply this method and estimate elasticity of taxable income in the Czech Republic using several recent personal income tax reforms. Those estimates that are consistent with economic theory and common sense suggest, along with results from optimal taxation theory, that the top marginal personal income tax rate in the Czech Republic should not exceed 71.8%, but any lower tax rate is justifiable based on redistributive tastes of a government.
Book Synopsis The Elasticity of Taxable Income with Respect to Marginal Tax Rates by : Emmanuel Saez
Download or read book The Elasticity of Taxable Income with Respect to Marginal Tax Rates written by Emmanuel Saez and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper critically surveys the large and growing literature estimating the elasticity of taxable income with respect to marginal tax rates (ETI) using tax return data. First, we provide a theoretical framework showing under what assumptions this elasticity can be used as a sufficient statistic for efficiency and optimal tax analysis. We discuss what other parameters should be estimated when the elasticity is not a sufficient statistic. Second, we discuss conceptually the key issues that arise in the empirical estimation of the elasticity of taxable income using the example of the 1993 top individual income tax rate increase in the United States to illustrate those issues. Third, we provide a critical discussion of most of the taxable income elasticities studies to date, both in the United States and abroad, in light of the theoretical and empirical framework we laid out. Finally, we discuss avenues for future research.
Book Synopsis The Elasticity of Taxable Income: Evidence and Implications by : Jonathan Gruber
Download or read book The Elasticity of Taxable Income: Evidence and Implications written by Jonathan Gruber and published by . This book was released on 2000 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Individual Heterogeneity, Nonlinear Budget Sets, and Taxable Income by : Soren Blomquist
Download or read book Individual Heterogeneity, Nonlinear Budget Sets, and Taxable Income written by Soren Blomquist and published by . This book was released on 2015 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many studies have estimated the effect of taxes on taxable income. To account for nonlinear taxes these studies either use instrumental variables approaches that are not fully consistent, or impose strong functional form assumptions. None allow for general heterogeneity in preferences. In this paper we derive the expected value and distribution of taxable income, conditional on a nonlinear budget set, allowing general heterogeneity and optimization error in taxable income. We find an important dimension reduction and use that to develop nonparametric estimation methods. We show how to nonparametrically estimate the expected value of taxable income imposing all the restrictions of utility maximization and allowing for measurement errors. We characterize what can be learned nonparametrically from kinks about compensated tax effects. We apply our results to Swedish data and estimate for prime age males a significant net of tax elasticity of 0.21 and a significant nonlabor income effect of about -1. The income effect is substantially larger in magnitude than found in other taxable income studies.
Book Synopsis Taxable Income Elasticity and the Anatomy of Behavioral Response by : Tuomas Matikka
Download or read book Taxable Income Elasticity and the Anatomy of Behavioral Response written by Tuomas Matikka and published by . This book was released on 2014 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses extensive Finnish panel data from 1995-2007 to analyze the elasticity of taxable income (ETI). I use individual changes in flat municipal income tax rates as an instrument for the overall changes in marginal tax rates. This instrument is not a function of individual income, which is the basis for an exogenous instrument in the taxable income model. In general, instruments used in previous studies do not have this feature. Furthermore, I estimate behavioral responses using smaller subcomponents of taxable income, such as working hours, fringe benefits and tax deductions. This “anatomy” of overall ETI has rarely been studied in the literature. The results show that the average ETI estimate in Finland is 0.35-0.60, depending on the empirical specification and the degree of regional controlling. Subcomponent analysis suggests that neither work effort nor labor supply respond actively to tax changes. In contrast, it seems that fringe benefits and deductions from taxable income might have a larger effect.
Book Synopsis The Elasticity of Taxable Income of Low-income Earners by : Ana Rosa Gamarra
Download or read book The Elasticity of Taxable Income of Low-income Earners written by Ana Rosa Gamarra and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper estimates the elasticity of taxable income (ETI) for Spain. Using the bunchingapproach and administrative tax data from 2008 to 2017, we find evidence of bunching atthe first tax kink (ETI=0.7) and missing mass around the second tax kink (ETI=0.4). Eventhough we detect heterogeneity in responses depending on taxpayers' personal and familycircumstances, bunching and missing mass are mostly related to labour income. The mainmechanism of response for bunching is associated with the use of certain deductions andallowances, while missing mass is driven by the phase-out region of a targeted deduction forlabour income.
Book Synopsis The Elasticity of Taxable Income in the Presence of Intertemporal Income Shifting by : Aspen Gorry
Download or read book The Elasticity of Taxable Income in the Presence of Intertemporal Income Shifting written by Aspen Gorry and published by . This book was released on 2018 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Knowing the elasticity of taxable income (ETI) is crucial for understanding the effects of taxation on taxpayer behavior and consequently on tax revenues. Previous research finds that high-income individuals are the most sensitive to tax policy changes. However, these individuals have more opportunities to defer income to future tax bases by altering the composition of their compensation than lower-income individuals. This paper considers the taxable income elasticity when individuals can shift income across tax bases and thereby defer taxation. We decompose the elasticity of taxable income into a real response as well as an income shifting response. We measure the tax rate on deferred income by the expected tax gain from deferring income using stock options as developed by Hall and Liebman (2000). Our results demonstrate that income shifting is an important component of previous estimates of the ETI. Because shifted income is taxed at future dates, income shifting decreases the welfare loss from personal income taxation associated with previous estimates.
Download or read book Does Atlas Shrug? written by Joel Slemrod and published by Harvard University Press. This book was released on 2000 with total page 540 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the introduction of the income tax in 1913, controversy has raged about how heavily to tax the rich. Opponents of high tax rates claim that heavy assessments have negative incentives on the productivity of some of our most talented citizens; supporters stress the importance of the rich shouldering their "fair share," and decry the loopholes that permit many to escape their obligations. Notably absent from this debate is hard evidence about the actual impact of taxes on the behavior of the affluent. This book presents evidence by leading economists of the effects of taxes on the formation of businesses, the supply of labor, the form of executive compensation, the accumulation of wealth, the allocation of portfolios, and the realization of capital gains. Among its findings are that the labor supply of the rich remained unchanged in the face of large tax cuts in 1986, and that in late 1992 executives exercised billions of dollars' worth of stock options in order to beat the tax increases expected in 1993. The book also presents a history of efforts to tax the rich, a demographic snapshot of the financially affluent, and a road map to widely used tax-avoidance strategies. Does Atlas Shrug? will be of great interest to policymakers and interested citizens who want to know how much tax revenue could really be gained by increasing tax rates on the rich, or whether low capital gains tax rates really spur economic growth.
Book Synopsis Empirical Foundations of Household Taxation by : Martin Feldstein
Download or read book Empirical Foundations of Household Taxation written by Martin Feldstein and published by University of Chicago Press. This book was released on 1996-08-01 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tax policy debates—and reforms—depend heavily on estimates of how alternative tax rules would affect behavior. Yet there is considerable controversy about the key empirical links among tax rates, household decisions, and revenue collections. The nine papers in this volume exploit the substantial variation in U.S. tax policy during the last two decades to investigate how taxes affect a range of household behavior, including labor-force participation, saving behavior, choice of health insurance plan, choice of child care arrangements, portfolio choice, and tax evasion. They also present new analytical results on the effects of different types of tax policy. All of this research relies on household-level data—drawn either from public-use tax return files or from large household-level surveys—to explore various aspects of the relationship between taxes and household behavior. As debates about the effects of proposed tax reforms continue in the 1990s, this volume will be of interest to policy makers and scholars in the field of public finance.
Book Synopsis The Costs of Taxation and the Marginal Cost of Funds by : Mr.Joel Slemrod
Download or read book The Costs of Taxation and the Marginal Cost of Funds written by Mr.Joel Slemrod and published by International Monetary Fund. This book was released on 1995-08-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is argued that taxation causes three kinds of deadweight losses and two types of direct costs. The deadweight losses arise from substitution, evasion, and avoidance activities while the direct costs are administrative and compliance costs. Some of these social costs tend to be discontinuous and/or nonconvex. Because most models of taxation ignore some components of the social costs of taxation, their conclusions cannot be of a general nature. An alternative approach to policy evaluation is to rely on a marginal efficiency cost of funds rule which can indicate appropriate directions of reforms. The paper discusses its merits, applicability, and limitations, as well as its relationship to other concepts.
Book Synopsis Estimating VAT Pass Through by : Ms.Dora Benedek
Download or read book Estimating VAT Pass Through written by Ms.Dora Benedek and published by International Monetary Fund. This book was released on 2015-09-30 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper estimates the pass through of VAT changes to consumer prices, using a unique dataset providing disaggregated, monthly data on prices and VAT rates for 17 Eurozone countries over 1999-2013. Pass through is much less than full on average, and differs markedly across types of VAT change. For changes in the standard rate, for instance, final pass through is about 100 percent; for reduced rates it is significantly less, at around 30 percent; and for reclassifications it is essentially zero. We also find: differing dynamics of pass through for durables and non-durables; no significant difference in pass through between rate increases and decreases; signs of non-monotonicity in the relationship between pass through and the breadth of the consumption base affected; and indications of significant anticipation effects together with some evidence of lagged effects in the two years around reform. The results are robust against endogeneity and attenuation bias.
