State income tax ≈ State income tax
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Wealth Inequality in the United States since 1913: Evidence from Capitalized Income Tax Data * Open
This paper combines income tax returns with macroeconomic household balance sheets to estimate the distribution of wealth in the United States since 1913. We estimate wealth by capitalizing the incomes reported by individual taxpayers, acc…
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Distributional National Accounts: Methods and Estimates for the United States* Open
International audience
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Implications of US Tax Policy for House Prices, Rents, and Homeownership Open
This paper studies the impact of the mortgage interest tax deduction on equilibrium house prices, rents, homeownership, and welfare. We build a dynamic model of the housing market that features a realistic progressive tax system in which o…
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Can Corporate Income Tax Cuts Stimulate Innovation? Open
We hypothesize that corporate income taxes distort firms’ incentives to innovate by reducing their pledgeable income. Using a differences-in-differences methodology, we document that large corporate income tax cuts boost corporate innovati…
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Assessing tax relief from targeted investment tax incentives through corporate effective tax rates Open
Corporate tax incentives reduce investment costs for businesses, which may affect investment and location decisions. They apply through different designs and interact with countries’ standard tax systems, often making it difficult for tax …
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Measuring Income Tax Evasion Using Bank Credit: Evidence from Greece * Open
We document that in semiformal economies, banks lend to tax-evading individuals based on the bank’s assessment of the individual’s true income. This observation leads to a novel approach to estimate tax evasion. We use microdata on househo…
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Taxing Our Wealth Open
This paper evaluates proposals for an annual wealth tax. While a dozen OECD countries levied wealth taxes in the recent past, now only three retain them, with only Switzerland raising a comparable fraction of revenue as recent proposals fo…
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The Role of Managerial Ability in Corporate Tax Avoidance Open
Most prior studies model tax avoidance as a function of firm-level characteristics and do not consider how individual executive characteristics affect tax avoidance. This paper investigates whether executives with superior ability to effic…
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How do tax progressivity and household heterogeneity affect Laffer curves? Open
How much additional tax revenue can the government generate by increasing the level of labor income taxes? In this paper, we argue that the degree of tax progressivity is a quantitatively important determinant of the answer to this questio…
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Measuring the Effects of Corporate Tax Cuts Open
On December 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act (TCJA), the most sweeping revision of US tax law since the Tax Reform Act of 1986. The law introduced many significant changes. However, perhaps none was as impo…
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Taxing the Rich: A History of Fiscal Fairness in the United States and Europe Open
In today's social climate of acknowledged and growing inequality, why are there not greater efforts to tax the rich? In this wide-ranging and provocative book, Kenneth Scheve and David Stasavage ask when and why countries tax their wealthi…
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The Three Parties in the Race to the Bottom: Host Governments, Home Governments and Multinational Companies Open
Most studies of tax competition and the race to the bottom focus on potential host countries competing for mobile capital, neglecting the role of corporate tax planning and of home governments that facilitate this planning. This neglect in…
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Relocation of the Rich: Migration in Response to Top Tax Rate Changes from Spanish Reforms Open
A Spanish reform granted regions the authority to set income tax rates, resulting in substantial tax differentials. Using administrative data, we find that conditional on moving, taxes have a significant effect on location choice. A 1% inc…
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Nonlinear Tax Incidence and Optimal Taxation in General Equilibrium Open
We study the incidence of nonlinear labor income taxes in an economy with a continuum of endogenous wages. We derive in closed form the effects of reforming nonlinearly an arbitrary tax system, by showing that this problem can be formalize…
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Tax structure and economic growth: a study of selected Indian states Open
The present study examines the long-run and short-run relationship between tax structure and state-level growth performance in India for the period 1991–2016. The analysis in this paper is based on the model of Acosta-Ormaechea and Yoo (20…
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Methods of Controlled Transactions and the Behavior of Companies According to the Public and Tax Policy Open
SUMMARY This paper aims to the analysis of the most common methods of controlled transactions, and the interpretation of the arm’s length principle under the view of the tax income comparison between countries with high and low tax rates. …
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Top 1 Percent Income Shares: Comparing Estimates Using Tax Data Open
Many studies have used tax data to measure the U.S. income distribution, but their results vary widely. For example, in 2014 the top 1 percent share of income is 21.5 percent in Piketty and Saez (2003 and updates), 16.7 percent in the Cong…
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Tax Havens and Effective Tax Rates: An Analysis of Private versus Public European Firms Open
We examine the impact of tax haven operations on the effective corporate tax burdens of publicly listed and privately held firms domiciled in Europe. In particular, we consider how European firms' tax haven operations interact with factors…
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Tax Cuts For Whom? Heterogeneous Effects of Income Tax Changes on Growth and Employment Open
This paper investigates how tax changes for different income groups affect aggregate economic activity.I construct a measure of who received (or paid for) tax changes in the postwar period using tax return data from NBER's TAXSIM.I aggrega…
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Tax Revenue and Economic Growth in Nigeria Open
The study examined the relationship between tax revenue and economic growth in Nigeria. The study adopted a descriptive and historical research design; secondary data for twenty-two years (1994 -2015) were collected from various issues of …
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What’s fair? Preferences for tax progressivity in the wake of the financial crisis Open
Progressive taxation is an effective redistributive tool in times of growing inequality. However, like all public policies, an increase in tax progressivity is unlikely if it lacks popular demand. Has the financial crisis affected the dema…
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Is This Tax Reform, or Just Confusion? Open
Based on the experience of recent decades, the United States apparently musters the political will to change its tax system comprehensively about every 30 years, so it seems especially important to get it right when the chance arises. Base…
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Effective Policy for Reducing Inequality? The Earned Income Tax Credit and the Distribution of Income Open
In this paper, we examine the effect of the EITC on the employment and income of single mothers with children.We provide the first comprehensive estimates of this central safety net policy on the full distribution of after-tax and transfer…
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How Americans Respond to Idiosyncratic and Exogenous Changes in Household Wealth and Unearned Income Open
We study how Americans respond to idiosyncratic and exogenous changes in household wealth and unearned income.Our analyses combine administrative data on U.S. lottery winners with an event-study design that exploits variation in the timing…
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The Tax Complexity Index – A Survey-Based Country Measure of Tax Code and Framework Complexity Open
This paper introduces the Tax Complexity Index (TCI). The TCI comprehensively measures the complexity of countries' corporate income tax systems faced by multinational corporations. It builds on surveys of highly experienced tax consultant…
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Does the Sole Description of a Tax Authority Affect Tax Evasion? - The Impact of Described Coercive and Legitimate Power Open
Following the classic economic model of tax evasion, taxpayers base their tax decisions on economic determinants, like fine rate and audit probability. Empirical findings on the relationship between economic key determinants and tax evasio…
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Taxing Higher Incomes: What Makes the High-Income Earners Consent to More Progressive Taxation in Latin America? Open
When do high-income earners get ‘on board’ with the fiscal contract and accept paying a larger share of the tax burden? Progressive taxes perform particularly poorly in developing countries. We argue that the common opposition of the afflu…
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Do Individuals Perceive Income Tax Rates Correctly? Open
This article uses data from survey questions fielded on the 2011 wave of the Cognitive Economics Study to uncover systematic errors in perceptions of income tax rates. First, when asked about the marginal tax rates (MTRs) for households in…
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The Earned Income Tax Credit (EITC) Open
We review research on the Earned Income Tax Credit (EITC), focusing on work appearing since the Hotz and Scholz (2003) review.Recent work has confirmed earlier findings that labor supply effects are positive for single mothers, smaller and…
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Intertemporal Labor Supply Substitution? Evidence from the Swiss Income Tax Holidays Open
This paper estimates intertemporal labor supply responses to two-year long income tax holidays staggered across Swiss cantons. Cantons shifted from an income tax system based on the previous two years’ income to a standard annual pay as yo…