We use variation in marginal tax rates and in tax bracket thresholds at which they apply in order to identify the substitution and income effects of tax reforms. We use a triple-difference estimator that exploits variation from subnational tax reforms, for which behavioral responses to taxes are...

An often neglected implication of couple taxation is its impact on marital sorting. A tractable model of such an impact is offered in this paper. It reveals that, as compared to joint taxation with income splitting, individual taxation makes higher-ability individuals more picky in the marriage...

This paper examines income tax systems in over thirty countries over the past forty years using microdata from the Luxembourg Income Study. We show that income tax systems worldwide are well approximated by a two-parameter log-linear effective tax function. We provide country- and year-specific...

Seit dem Jahr 2016 wurde der Einkommensteuertarif jährlich an die Inflation angepasst, um die sonst automatisch steigende durchschnittliche Belastung der Einkommen - die "kalte Progression" - auszugleichen. Zu diesem Zweck wurden Grundfreibetrag und Tarifeckwerte verschoben, sodass die...

Im Rahmen dieses Projektes wurde gemeinsam mit dem Institut für Höhere Studien die Höhe der kalten Progression in Österreich geschätzt. Diese Berechnungen begründen die Grundlage für die Indexierung des Steuersystems im folgenden Jahr.

This paper examines the implications of Artificial Intelligence (AI) and automation for the taxation of labor and capital in advanced economies. It synthesizes empirical evidence on worker displacement, productivity, and income inequality, as well as theoretical frameworks for optimal taxation....

Seit dem Jahr 2016 wurde der Einkommensteuertarif jährlich an die Inflation angepasst, um die sonst automatisch steigende durchschnittliche Belastung der Einkommen - die "kalte Progression" - auszugleichen. Zu diesem Zweck wurden Grundfreibetrag und Tarifeckwerte verschoben, sodass die...

We decompose earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks, modeled as innovations to the marginal disutility of work, and labor supply reactions to wage shocks we formulate a life-cycle model of consumption and labor supply. For estimation we...

Recent evidence from developing countries shows that the bottom of the income distribution pays more taxes relative to their income than the top 1%, highlighting a lack of tax progressivity in these societies. Current measures of tax progressivity fail to indicate which part of the income...

This paper presents a novel approach to addressing VAT regressivity, by proposing the adoption of a progressive VAT: a single-rate, broad-base, VAT, whereby tax paid on consumption is re-paid to lower income households in real-time, at the moment of purchase. Such a system can effectively...

This chapter examines the implications of Artificial Intelligence (AI) and automation for the taxation of labor and capital in advanced economies. It synthesizes empirical evidence on worker displacement, productivity, and income inequality, as well as theoretical frameworks for optimal...

This paper examines the implications of Artificial Intelligence (AI) and automation for the taxation of labor and capital in advanced economies. It synthesizes empirical evidence on worker displacement, productivity, and income inequality, as well as theoretical frameworks for optimal taxation....

The implementation of capacity development (CD) advice and reforms since a 2018 TADAT assessment shows slower progress than expected. Renewed recommendations suggest initiating a transformation program for integrated reform

In this study, we examine the behavior of self-employed taxpayers who "bunch" at an income level just below a critical threshold, which triggers a transition from a simple tax regime to a more complex one. Under the simple regime, individuals complete their tax forms independently, while the...

Many countries have automatic wage tax withholding systems with tax non-filing options for some taxpayers. We show that this has sizable and potentially unintended implications for effective taxation because taxes are often over-withheld. Low-income taxpayers pay more taxes than they have to...

Between 1952 and 1995, the Swedish church tax was constructed as an opt-out system: Swedish citizens were automatically enrolled in the church at birth but were free to opt out. I compare children born shortly before and after the system's discontinuation and find that birth memberships...

This paper studies the effects of income taxation on entrepreneurship, empirically and in a structural macro model with entrepreneurial choice. Combining state-level tax data with household and firm data we document that higher and more progressive taxation has a strong negative impact on...

We address this question in a heterogeneous-agent incomplete-markets model featuring exogenous idiosyncratic risk, endogenous skill investment, and flexible labor supply. The tax and transfer schedule is restricted to be log-linear in income, a good description of the US system. Rising...

We investigate the interplay between asset prices, wealth inequality, and taxation in a dynamic general equilibrium economy populated by multiple agents with heterogeneous risk aversions. Tax revenues are collected from consumption taxes and are equally redistributed to all investors through...

Analysis of the relationship between taxes and self-employment should account for the interplay between responses in self-employment and wage employment. To this end, we estimate a two-state multi-spell duration model which accounts for both observed and unobserved heterogeneity using a large...