Do Tax Rate Cuts Encourage Entrepreneurial Entry?
نویسنده
چکیده
Policy makers have long been interested in whether tax policies can be used to encourage entrepreneurial activity, but prior studies have produced ambiguous results. We use a twelveyear panel of tax return data to examine the effects of tax rates on entrepreneurial entry. We calculate household-level tax rates and employ multiple measures of entrepreneurship. Our results offer convincing evidence that cuts in relative tax rates faced by entrepreneurs, either in the form of higher rates for wage workers or lower rates for entrepreneurs, increase entry. The magnitudes of these effects suggest that an across-the-board tax cut would increase entry. JEL Codes: H25, H3, L26
منابع مشابه
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