Author: Adam Looney
Publisher:
ISBN:
Category : Labor
Languages : en
Pages : 60
Book Description
"We use anticipated changes in tax rates associated with changes in family composition to estimate intertemporal labor supply elasticities and elasticities of taxable income with respect to the net-of-tax wage rate. A number of provisions of the tax code are tied explicitly to child age and dependent status. Changes in the ages of children can thus affect marginal tax rates through phase-in or phase-out provisions of tax credits or by shifting individuals across tax brackets. We identify the response of labor and income to these tax changes by comparing families who experienced a tax rate change to families who had a similar change in dependents but no resulting tax rate change. A primary advantage of our approach is that the changes are anticipated and therefore should not cause re-evaluations of lifetime income. The estimates of substitution effects should consequently not be confounded by life-cycle income effects. The empirical design also allows us to compare similar families and can be used to estimate elasticities across the income distribution. In particular, we provide estimates for low and middle income families. Using data from the Survey of Income and Program Participation (SIPP), we estimate an intertemporal elasticity of family labor earnings close to one for families earning between $30,000 and $75,000. Our estimates for families in the EITC phase-out range are lower but still substantial. Estimates from the IRS-NBER individual tax panel are consistent with the SIPP estimates. Tests using alternate control groups and simulated "placebo" tax schedules support our identifying assumptions. The high-end estimates suggest substantial efficiency costs of taxation."
The Effect of Anticipated Tax Changes on Intertemporal Labor Supply and the Realization of Taxable Income
Author: Adam Looney
Publisher:
ISBN:
Category : Labor
Languages : en
Pages : 60
Book Description
"We use anticipated changes in tax rates associated with changes in family composition to estimate intertemporal labor supply elasticities and elasticities of taxable income with respect to the net-of-tax wage rate. A number of provisions of the tax code are tied explicitly to child age and dependent status. Changes in the ages of children can thus affect marginal tax rates through phase-in or phase-out provisions of tax credits or by shifting individuals across tax brackets. We identify the response of labor and income to these tax changes by comparing families who experienced a tax rate change to families who had a similar change in dependents but no resulting tax rate change. A primary advantage of our approach is that the changes are anticipated and therefore should not cause re-evaluations of lifetime income. The estimates of substitution effects should consequently not be confounded by life-cycle income effects. The empirical design also allows us to compare similar families and can be used to estimate elasticities across the income distribution. In particular, we provide estimates for low and middle income families. Using data from the Survey of Income and Program Participation (SIPP), we estimate an intertemporal elasticity of family labor earnings close to one for families earning between $30,000 and $75,000. Our estimates for families in the EITC phase-out range are lower but still substantial. Estimates from the IRS-NBER individual tax panel are consistent with the SIPP estimates. Tests using alternate control groups and simulated "placebo" tax schedules support our identifying assumptions. The high-end estimates suggest substantial efficiency costs of taxation."
Publisher:
ISBN:
Category : Labor
Languages : en
Pages : 60
Book Description
"We use anticipated changes in tax rates associated with changes in family composition to estimate intertemporal labor supply elasticities and elasticities of taxable income with respect to the net-of-tax wage rate. A number of provisions of the tax code are tied explicitly to child age and dependent status. Changes in the ages of children can thus affect marginal tax rates through phase-in or phase-out provisions of tax credits or by shifting individuals across tax brackets. We identify the response of labor and income to these tax changes by comparing families who experienced a tax rate change to families who had a similar change in dependents but no resulting tax rate change. A primary advantage of our approach is that the changes are anticipated and therefore should not cause re-evaluations of lifetime income. The estimates of substitution effects should consequently not be confounded by life-cycle income effects. The empirical design also allows us to compare similar families and can be used to estimate elasticities across the income distribution. In particular, we provide estimates for low and middle income families. Using data from the Survey of Income and Program Participation (SIPP), we estimate an intertemporal elasticity of family labor earnings close to one for families earning between $30,000 and $75,000. Our estimates for families in the EITC phase-out range are lower but still substantial. Estimates from the IRS-NBER individual tax panel are consistent with the SIPP estimates. Tests using alternate control groups and simulated "placebo" tax schedules support our identifying assumptions. The high-end estimates suggest substantial efficiency costs of taxation."
The Effect of Anticipated Tax Changes on Intertemporal Labor Supply and the Realization of Taxable Incomel
Author: Looney
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
The Effect of Taxation on Lifecycle Labor Supply
Author: Jane K. Dokko
Publisher:
ISBN:
Category :
Languages : en
Pages : 62
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 62
Book Description
Three Essays on the Effect of Taxes and Tax Reform on the Life-cycle Labor Supply
Author: James Patrick Ziliak
Publisher:
ISBN:
Category :
Languages : en
Pages : 422
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 422
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 Effects of Taxes on the Supply of Labor
Author: Michael Jay Boskin
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 400
Book Description
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 400
Book Description
The Effect of Income Taxation on Labor Supply
Author: Robert K. Triest
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 478
Book Description
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 478
Book Description
The Effect of Direct Taxes on Wages
Author: Yehuda Kotowitz
Publisher: Anti-inflation Board
ISBN:
Category : Direct taxation
Languages : en
Pages : 128
Book Description
Publisher: Anti-inflation Board
ISBN:
Category : Direct taxation
Languages : en
Pages : 128
Book Description
Taxes and Labor Supply
Author: Jerry A. Hausman
Publisher:
ISBN:
Category : Employment tax credit
Languages : en
Pages : 84
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
Publisher:
ISBN:
Category : Employment tax credit
Languages : en
Pages : 84
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
The Effect of Taxation on Labor Supply
Author: Gary T. Burtless
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 102
Book Description
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 102
Book Description