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Author: Richard Rogerson
Publisher: AEI Press
ISBN: 0844743577
Category : Business & Economics
Languages : en
Pages : 129
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Book Description
As the Bush-era tax cuts are set to expire in 2010, ambitious health care legislation is moving through Congress, and entitlement programs are growing at unsustainable rates, U.S. policymakers face important questions about the optimal size and scope of federal spending. The federal government finances its spending through labor taxes, including taxes on income, payroll, and consumption-taxes that generate significant disincentives for employment. In Taxes, Transfers, and Labor Supply: An International Perspective, Richard Rogerson contends that the unintended consequences of increased labor taxes would be too large for policymakers to ignore. Rogerson compares fifty years of time series data from the United States and fourteen other OECD countries. He finds that a 10 percentage point increase in the tax rate on labor leads to a 10 to 15 percent decrease in hours of work. Even a 5 percent decrease in hours worked would mean a decline in labor market productivity equating to a serious recession. But, whereas recessions are temporary, changes in government spending patterns have permanent repercussions. Although government spending provides citizens with many important benefits, these benefits must be weighed against the disincentivizing effects of increased labor taxes. Policymakers who fail to account for this decrease in labor productivity risk expanding government programs beyond the economy's ability to support them.
Author: Richard Blundell
Publisher: Oxford University Press
ISBN: 0191066745
Category : Business & Economics
Languages : en
Pages : 488
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Book Description
This volume presents Richard Blundell's outstanding research on the modern economic analysis of labor markets and public policy reforms. Professor Blundell's hugely influential work has enhanced greatly our understanding of how individuals' behavior on the labor market respond to taxation and social policy influence. Edited by IZA, this volume brings together the author's key papers, some co-authored and some unpublished, with new introductions and an epilogue. It covers some of the main research insights in the study of labor supply. The question of how individuals adapt their behavior in response to policy changes is one of the most investigated topics in empirical labor and public economics. Do people reduce their working hours if governments decide to raise taxes? Might they even withdraw completely from the labor market? Labor supply estimations are extensively used for various policy analyses and economic research. Labor supply elasticities are key information when evaluating tax-benefit policy reforms and their effect on tax revenue, employment, and redistribution. The chapters cover empirical and theoretical developments as well as applications to tax and welfare reform, and each represents a substantive research contribution from Blundell's publications in top research outlets.
Author: C. V. Brown
Publisher: Routledge
ISBN: 0429655851
Category : Business & Economics
Languages : en
Pages : 402
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Book Description
First published in 1981. This book reports on a decade of research into the effects of taxation on the supply of labour. In addition to their work in making labour supply estimates, the study explores a number of the ways labour supply estimates can be used. When budget constraints are non-linear it is not possible to estimate the effects of (tax) or other policy changes from knowledge of labour supply elasticities alone, and it is necessary to re-estimate the original model used to derive the estimates. The implications of labour supply estimates for the study of inequality and optimal taxation are considered. Macro-economic models of the economy typically omit labour supply functions or include functions which are inconsistent with micro-economic work on labour supply. This book will appeal to academic economists, senior students and policy-makers in the field of public finance and labour economics, who will find much of interest from both the theoretical and policy standpoints.
Author: Richard Rogerson
Publisher: AEI Press
ISBN: 0844743577
Category : Business & Economics
Languages : en
Pages : 129
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Book Description
As the Bush-era tax cuts are set to expire in 2010, ambitious health care legislation is moving through Congress, and entitlement programs are growing at unsustainable rates, U.S. policymakers face important questions about the optimal size and scope of federal spending. The federal government finances its spending through labor taxes, including taxes on income, payroll, and consumption-taxes that generate significant disincentives for employment. In Taxes, Transfers, and Labor Supply: An International Perspective, Richard Rogerson contends that the unintended consequences of increased labor taxes would be too large for policymakers to ignore. Rogerson compares fifty years of time series data from the United States and fourteen other OECD countries. He finds that a 10 percentage point increase in the tax rate on labor leads to a 10 to 15 percent decrease in hours of work. Even a 5 percent decrease in hours worked would mean a decline in labor market productivity equating to a serious recession. But, whereas recessions are temporary, changes in government spending patterns have permanent repercussions. Although government spending provides citizens with many important benefits, these benefits must be weighed against the disincentivizing effects of increased labor taxes. Policymakers who fail to account for this decrease in labor productivity risk expanding government programs beyond the economy's ability to support them.
Author: Jerry A. Hausman
Publisher:
ISBN:
Category : Employment tax credit
Languages : en
Pages : 84
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Book Description
Over 75% of Federal tax revenue is raised through the income tax and FICA taxes. The potential effects on labor supply and economic welfare are important because of the large and increasing reliance on direct taxation. Over the past few years significant legislative changes have occurred with respect to taxation of labor: the 25% tax cuts, indexation, the tax credit for working spouses, and likely increases in FICA taxation.I reviewr ecent econometric work which measures the effect of taxes on labor supply and which analyzes the likely effects of tax law changes on labor supply and economic welfare.Sections 1 and 2 develop the theory and econometric techniques for models of labor supply with taxes. Section 3 discusses the various tax systemsin the U.S. In Section 4, I present empirical estimates for husbands'and wives' labor supply functions. The economic cost of the tax system is also estimated. In Section 5 the individual questionnaire data for high income individuals is reviewed. Lastly, in Section 6 evidence from the negative income tax experiments and for social security beneficiaries is considered. These latter groups face extremely high marginal tax rates so that evidence beyond that contained in other surveys of labor supplyis provided
Author: Richard Donald Rogerson
Publisher: A E I Press
ISBN: 9780844743561
Category : Fiscal policy
Languages : en
Pages : 113
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Book Description
Author: Jerry A. Hausman
Publisher:
ISBN:
Category : Husband and wife
Languages : en
Pages : 30
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Book Description
Over the period 1960 - 1983 the proportion of federal tax revenue raised by taxation of labor supply has risen from 57-77 percent. In this paper, we specify and estimate a model of family labor supply which treats both federal and state taxation. Husbands and wives labor supply are treated jointly rather than in aseparate manner as in previous research. A method to calculate the virtual wage for nonworking spouses is used within a utility maximizing framework to treat correctly the joint family labor supply decision. Joint family efforts are found to be important. The efficiency cost (deadweight loss) of labor taxation is estimated to be 29.6% of tax revenue raised. The effect of the new 10% deduction to ease the marriage tax for working spouses leads to a prediction of 3.8% increase in wives labor supply and a .9% decrease in husbands labor supply.Overall taxes paid are predicted to decrease by 3.4%.
Author: C. V. Brown
Publisher: Routledge
ISBN: 042965829X
Category : Business & Economics
Languages : en
Pages : 288
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Book Description
First published in 1981. This book reports on a decade of research into the effects of taxation on the supply of labour. In addition to their work in making labour supply estimates, the study explores a number of the ways labour supply estimates can be used. When budget constraints are non-linear it is not possible to estimate the effects of (tax) or other policy changes from knowledge of labour supply elasticities alone, and it is necessary to re-estimate the original model used to derive the estimates. The implications of labour supply estimates for the study of inequality and optimal taxation are considered. Macro-economic models of the economy typically omit labour supply functions or include functions which are inconsistent with micro-economic work on labour supply. This book will appeal to academic economists, senior students and policy-makers in the field of public finance and labour economics, who will find much of interest from both the theoretical and policy standpoints.
Author: Michael Jay Boskin
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 400
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Book Description
Author: Robert K. Triest
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 478
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Book Description
Author: Gary T. Burtless
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 36
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Book Description
