The Effect of Marginal Tax Rates on Taxable Income
A Panel Study of the 1986 Tax Reform Act
Bibliographic Data
| ID | 10173676 |
|---|---|
| Authors | Martin Feldstein (corresponding author) |
| Year | 1995 |
| Volume | 103 |
| Issue | 3 |
| Pages | 551-572 |
| Publication date | 1995-06-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/261994 |
| OpenAlex | W2891562321 |
| Language | EN |
| Citations received | 82 |
This paper uses a Treasury Department panel of more than 4,000 taxpayers to estimate the sensitivity of taxable income to changes in tax rates based on a comparison of the tax returns of the same individual taxpayers before and after the 1986 tax reform. The analysis emphasizes that the response of taxable income involves much more than a change in the traditional measures of labor supply. The evidence shows an elasticity of taxable income with respect to the marginal net-of-tax rate that is at least one and that could be substantially higher. The implications for recent tax rate changes are discussed
Adjusted gross income · Economics · Gross income · Indirect tax · Labour economics · Monetary economics · Public economics · State income tax · Tax credit · Tax rate · Tax reform · Taxable income · Treasury · Value-added tax · Accounting · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics
Quebec prosperity
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| Unique citing works | 82 |
|---|---|
| Citations per year | 2,73 |
| Citation span | 1996 - 2026 (31) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 82 |