We use university parking permits to study how firms and employees split the value of employee benefit tax subsidies. Starting in 1998, the IRS allowed employees to pay for parking passes with pre-tax income. This subsidized the parking pass purchases of faculty and staff, but did not affect students. We show that the typical university raised its parking rates by 8-10% extra when it implemente...

The American Jobs Creation Act of 2004 rewrote the reforestation tax incentives available to private forest owners. Owners can now deduct outright reforestation costs up to $10,000 per year for each qualified timber property and amortize any additional amount over 8 tax years. To assess the economic effect of the new incentives on forest owners, the authors developed spreadsheets to calculate a...

Generational accounting is a relatively new method of reorganizing the government's budget data to understand how the burden of paying for government spending on goods and services is distributed among living and future generations.' To study this distribution, generational accounting estimates lifetime net tax rates facing different generations under current policies.' For a given generation, ...

abstract tax can be discussed from various aspects and in the meantime, evaluation the tax system performance is very important. this article try to point this out in 2005 and 2008 (the second and final year of the forth development plan) in the iranian economy and in provinces separately. to enable this comparison and homogeneity, iranian provinces are divided into three groups (developed, les...

We use a firm-CEO assignment framework to model the market for CEO effective labor. In the model’s equilibrium more talented CEOs match with and supply more effort to larger firms. Taxation of CEO incomes affects the equilibrium pricing of CEO effective labor and, hence, spills over and affects firm profits. Absent the ability to tax profits or a direct concern for firm owners, a standard presc...

This paper examines optimal income tax progressivity when avoidance responses to taxation are important, and can be controlled at some cost by the government. A simple example shows that ignoring the fact that avoidance can be controlled that the leak in Okun’s bucket can be fixed can lead to misleading implications about the optimal degree of tax rate progressivity. The paper then generalizes ...