Effects of the United States tax system on transitions into self-employment
نویسنده
چکیده
This paper examines the impact of US income and payroll taxes on the decision of wage-and-salary employees to become self-employed. I exploit variations in the tax treatment of wage and self-employment income using the Panel Study of Income Dynamics. Results show that differential taxation has significant effects on the probability of making a transition into self-employment. Reducing an individual’s marginal tax rate on self-employment income while holding his marginal wage tax rate constant reduces the probability of entry. Conversely, reducing his relative aÕerage tax rate in self-employment increases this probability by a smaller amount. q 2000 Elsevier Science B.V. All rights reserved. JEL classification: J23; H24
منابع مشابه
A Comparative Study of the Principles of Fair Proceeding in Iran with Tax Litigation patterns in the United States, Britain, France and Germany
One of the most important economic topics in every country is considering tax issues as a way of increasing the government's income through attracting public confidence by observing the principles of proceeding in the tax system of the country which might likely cause a national production boom, increase economic growth rate, reduce unemployment and the fair distribution of wealth. In this rega...
متن کاملA Comparison of Iran and UK EQ-5D-3L Value Sets Based on Visual Analogue Scale
Background Preference weights for EQ-5D-3L based on visual analogue scale (VAS) has recently been developed in Iran. The aim of the current study was to compare performance of this value set against the UK VAS-based value set. Methods The mean scores for all possible 243 health states were compared using Student t test. Absolute agreement and consistency were investigated using concordance co...
متن کاملTax Policy and Entrepreneurial Entry
While recent research has emphasized the desirability of studying effects of changes in marginal tax rates on taxable income, broadly defined, there has been comparatively little analysis of effects of marginal tax rate changes on entrepreneurial entry. This margin is likely to be important both because of the likely greater elasticity of entrepreneurial decisions with respect to tax changes (r...
متن کاملSocial Determinants of Polypharmacy in First Generation Mexican Immigrants in the United States
Introduction: Socioeconomic status (SES) indicators are among the main social determinants of health and illness. Less, however, is known about the role of SES in the epidemiology of polypharmacy in immigrant Latino Americans living in the United States. This research studied the association between three SES indicators, education, income, and employment, and polypharmacy in ol...
متن کاملHealth Services Research Spending and Healthcare System Impact; Comment on “Public Spending on Health Service and Policy Research in Canada, the United Kingdom, and the United States: A Modest Proposal”
The challenges associated with translating health services and policy research (HSPR) evidence into practice are many and long-standing. Indeed, those challenges have themselves spawned new areas of research, including knowledge translation and implementation science. These sub-disciplines have increased our understanding of the critical success factors associated with the uptake of research ev...
متن کامل