Mental Accounting Effects of Income Tax Shifting
Bibliographic Data
| ID | 19318031 |
|---|---|
| Authors | Naomi E Feldman (0000-0001-7053-9683, Ben-Gurion University of the Negev, corresponding author) |
| Year | 2010 |
| Volume | 92 |
| Issue | 1 |
| Pages | 70-86 |
| Publication date | 2010-02-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Review of Economics and Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0034-6535 • E-ISSN: 1530-9142 |
| Publisher | MIT Press (PUBLISHER • US) |
| DOI | 10.1162/rest.2009.11892 |
| OpenAlex | W2108805028 |
| Language | EN |
| Citations received | 5 |
| References cited | 13 |
This paper analyzes a 1992 decrease in U.S. federal income tax withholding that shifted the timing of income tax payments while leaving ultimate tax burdens unchanged. Consequently income typically received as a lump-sum refund on filing a tax return was shifted into the previous year's monthly income. This paper considers the impact of the withholding change in the context of mental accounting and finds a decrease in the probability that households contributed to a tax-preferred retirement account. Additional robustness tests show that short-term saving did not simultaneously increase and that the main findings are not driven by liquidity constraints
Actuarial science · Context (archaeology) · Economics · Gross income · Income tax · Labour economics · Market liquidity · Mental accounting · Monetary economics · Payment · Public economics · Robustness (evolution) · State income tax · Tax reform · Finance · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics
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| Citations per year | 0.56 |
|---|---|
| Citation span | 2017 - 2025 (9) |
| Highly cited | No |