The effect of taxes on taxable earnings: Evidence from the 2001 and related U.S. federal tax ACTS

Research output: Contribution to journalReview articlepeer-review

12 Scopus citations

Abstract

This study measures the elasticity of taxable earnings to the marginal tax price, identified by a marriage penalty relief provision contained in the Economic Growth and Tax Relief Reconciliation Act of 2001. The change in joint taxable earnings in response to the provision implies a joint elasticity ranging from 0.217 to 0.304. The joint response is driven by the taxable wage earnings of males, and does not reflect a shift in income from tax-deferred to taxable compensation, but an increase in total wage earnings.

Original languageEnglish (US)
Pages (from-to)323-352
Number of pages30
JournalNational Tax Journal
Volume64
Issue number2 PART 1
StatePublished - Jan 1 2011

Keywords

  • Economic Growth and Tax Relief Reconciliation Act of 2001
  • New tax responsiveness literature
  • Tax elasticity
  • Taxation

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'The effect of taxes on taxable earnings: Evidence from the 2001 and related U.S. federal tax ACTS'. Together they form a unique fingerprint.

Cite this