Marginal tax rate changes have the ability to affect fertility decisions by altering the opportunity cost of time through a change in the after-tax wage. Using a natural experiments framework developed to examine women’s labor force participation we investigate the effect of the Tax Reform Act of 1986 on marital fertility. The data were from the March Current Population Survey. We find the wome...

The greenhouse effect forces national Governments to design environmental tax policies for facing not only global warming but also the negative economic consequences resulting from the reduction of emissions such as a negative change of GDP. This paper aims at verifying the impact of an environmental fiscal reform able to attain both the reduction of greenhouse gas emissions and the regional do...

In the 1990s, many states liberalized statutory rules regarding the tax treatment of earned and unearned income for welfare program eligibility and benefit levels. I use quality control data from the AFDC/TANF program over 1983–2002 to document changes in the corresponding effective tax rates and benefit guarantees. After welfare reform I find that effective tax rates fell by 50 percent on earn...

‘e debate on corporate tax reform in the U.S. have included arguments for a ‘border adjustment tax’ that would e‚ectively raise the tax on imported inputs and provide a subsidy to exports. ‘is policy is equivalent to other uniform border taxes such as a combined import tari‚ and export subsidy and a uniform value added tax and payroll subsidy. In this note I argue that contrary to popular argum...

Taxes make up the bulk of any government revenue and provide a sustainable source of revenue. In recent years, the main focus of the tax reform program, in almost all countries of the world, has been on VAT. But a major problem in the effective implementation of VAT, which is a nascent tax base in countries, is the phenomenon of tax evasion. Therefore, one of the most basic steps in preventing ...

57 National Tax Journal Vol. LIX, No. 1 March 2006 Abstract In this paper, I use data from an exceptionally detailed survey of attitudes toward taxation in the United States to investigate the relative importance of one particular misconception—that high–income people would pay more tax under an apparently regressive reform, mostly because many people believe that the distribution of the burden...

income taxes is approximately $1.565 million, implying an aggregate annual compliance cost of over $2 billion. As a fraction of revenue raised, these compliance costs are lower than estimates that have been made for the individual income tax. The cost-to-revenue ratio is higher for state corporate tax systems than it is for the federal tax system, presumably reflecting the nonuniformity of stat...

This paper evaluates the effects of a fall in payroll taxes on employment and wages in the presence of high labor informality. For that purpose, the paper examines a recently approved tax reform in Colombia especially targeted to promote labor formality. The model suggests that the reform would increase total employment by between 0.3 to 0.5 percent and formal employment by between 3.4 to 3.7 p...