Author: Gary T. Burtless
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 36
Book Description
Taxes, Transfers, and Labor Supply
Author: Gary T. Burtless
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 36
Book Description
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 36
Book Description
The Impact of Labor Taxes on Labor Supply
Author: Richard Rogerson
Publisher: AEI Press
ISBN: 0844743577
Category : Business & Economics
Languages : en
Pages : 129
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.
Publisher: AEI Press
ISBN: 0844743577
Category : Business & Economics
Languages : en
Pages : 129
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.
The Labor-supply Response to Tax and Transfer Programs
Author: Robert A. Moffitt
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 78
Book Description
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 78
Book Description
Labor Supply and Taxation
Author: Richard Blundell
Publisher: Oxford University Press
ISBN: 0198749805
Category : Business & Economics
Languages : en
Pages : 485
Book Description
Presents Richard Blundell's outstanding research on the modern economic analysis of labour markets and public policy reforms and brings together, in revised and integrated form, a number of the author's key papers.
Publisher: Oxford University Press
ISBN: 0198749805
Category : Business & Economics
Languages : en
Pages : 485
Book Description
Presents Richard Blundell's outstanding research on the modern economic analysis of labour markets and public policy reforms and brings together, in revised and integrated form, a number of the author's key papers.
Taxes, Transfers, and Economic Distortions
Author: Gary T. Burtless
Publisher:
ISBN:
Category : Capital movements
Languages : en
Pages : 20
Book Description
Publisher:
ISBN:
Category : Capital movements
Languages : en
Pages : 20
Book Description
Labor Supply Responses to Taxes and Transfer Payments
Author: Rebecca Lynn Johannsen
Publisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 142
Book Description
Publisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 142
Book Description
How the Taxation of Labor and Transfer Payments Affect Growth and Employment
Author: United States. Congress. Joint Economic Committee
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 68
Book Description
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 68
Book Description
The U.S. Tax-transfer System and Low-income Households
Author: Salvador Ortigueira
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Eligibility and benefits for anti-poverty income transfers in the U.S. are based on both the means and the household characteristics of applicants, such as their filing status, living arrangement, and marital status. In this paper we develop a dynamic structural model to study the effects of the U.S. tax-transfer system on the decisions of non-college-educated workers with children. In our model workers face uninsurable idiosyncratic risks and make decisions on savings, labor supply, living arrangement, and marital status. We find that the U.S. anti-poverty policy distorts the cohabitation/marriage decision of single mothers, providing incentives to cohabit. We also find quantitatively important effects on savings, and on the labor supply of husbands and wives. Namely, the model yields a U-shaped relationship between the earnings of one spouse and the labor supply of the other spouse, a result that we also find in the data. We show that these U-shaped relationships stem in part from the current design of anti-poverty income programs, and that the introduction of an EITC deduction on the earnings of secondary earners-as proposed in the 21st Century Worker Tax Cut Act-would increase the employment rate of the spouses of workers earning between $15K and $35K, especially of female spouses.
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Eligibility and benefits for anti-poverty income transfers in the U.S. are based on both the means and the household characteristics of applicants, such as their filing status, living arrangement, and marital status. In this paper we develop a dynamic structural model to study the effects of the U.S. tax-transfer system on the decisions of non-college-educated workers with children. In our model workers face uninsurable idiosyncratic risks and make decisions on savings, labor supply, living arrangement, and marital status. We find that the U.S. anti-poverty policy distorts the cohabitation/marriage decision of single mothers, providing incentives to cohabit. We also find quantitatively important effects on savings, and on the labor supply of husbands and wives. Namely, the model yields a U-shaped relationship between the earnings of one spouse and the labor supply of the other spouse, a result that we also find in the data. We show that these U-shaped relationships stem in part from the current design of anti-poverty income programs, and that the introduction of an EITC deduction on the earnings of secondary earners-as proposed in the 21st Century Worker Tax Cut Act-would increase the employment rate of the spouses of workers earning between $15K and $35K, especially of female spouses.
Tax and Transfer Policy and Female Labor Supply
Author: Nada Eissa
Publisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 368
Book Description
Publisher:
ISBN:
Category : Earned income tax credit
Languages : en
Pages : 368
Book Description
Estimating the Impact of Labor Supply Adjustments on Transfer Program Costs
Author: Myles Maxfield
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 172
Book Description
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 172
Book Description