2 " The Clinton revenue estimates are based on the fallacy that taxpayers will not change their behavior in response to a 37% jump in their marginal tax rates... " Martin Feldstein (1993) Estimating the effect of income taxes on individual behaviors such as labor supply, compensation, saving, and taxable income have been focal points of economic research for several decades. Because income taxe...

Over the last twenty years we have seen an increasing use of in-work tax subsidies to encourage labor supply among low-income groups. In Sweden, a non-targeted earned income tax credit was introduced in 2007, and was reinforced in 2008, 2009 and 2010. The stated motive of the reform was to boost employment; in particular to provide incentives for individuals to go from unemployment to, at least...

INTRODUCTION Including entitlement programs and tax incentives, the scope of federal efforts to help nonelderly residents obtain health care coverage is considerable. In 2007, the federal government spent roughly $130 billion on subsidized health insurance provided to nonelderly low-income people through the federal--state Medicaid program and the State Children’s Health Insurance Program (SCHI...

We show the unique form that must be taken by a tax system based entirely on realization accounting to implement a uniform capital income tax, or, equivalently, a uniform wealth tax. This system combines elements of an accrual based capital income tax and a traditional cashflow tax, having many of the attributes of the latter while still imposing a tax burden on marginal capital income. Like th...

budget plays an important role in public sector management and administration .one of its components is revenues forecasting and without the necessary accuracy in predicting revenues, government deficit will occur and people are incapable of facing with losses of reducing of important and essential services like education and health care. in this study, the rational expectations hypothesis is a...

Income Tax Flattening: Does It Help to Reduce the Shadow Economy? This paper examines the effect of global transition to simpler, flatter income tax systems on the size of the shadow economy. By offering a new estimation framework, the paper revives the traditional electricity consumption approach to measuring the shadow economy. It overcomes the limitations of previous literature by using a ne...

The dual income tax combines a progressive tax schedule for labour income with a low flat tax rate on capital income and corporate income. This paper restates the case for the dual income tax and discusses alternative methods of taxing business income under such a tax system, paying special attention to the taxation of income from closely held corporations. It is argued that the imputed normal ...

Tax-based deficit reduction experiments for the U.S. and EMU-12 are conducted using an open economy model. In welfare terms, raising the consumption tax is the least costly, followed by the labor income tax, then the capital income tax. Use of an open economy model means that the incidence of the consumption tax is borne in part by foreign producers. Among revenue-neutral tax experiments, parti...

Shifting of income between the corporate and the personal income tax bases in response to tax incentives is the premise of the literature on taxation and organizational form. Empirical evidence of income shifting is, however, merely circumstantial. Using a unique panel of highfrequency VAT data from Israel, we trace the footprints of income-shifting through incorporation by high-income individu...