Comparing the Effects of Discretionary Tax Changes between the US and the UK

The remarkable similarities of the effects of discretionary tax changes between the US and the UK, shown in Cloyne (2013), raise the obvious concern whether the effects of tax changes at disaggregated levels in the UK still resemble those in the US. This paper investigates the issue along three dimensions -- positive and negative tax changes, anticipated and unanticipated tax changes, and capital and labor income tax changes. We show the impacts of various types of tax changes between the two countries differ in their directions, magnitudes and timings