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We find that sin good purchases are highly concentrated with 10% of households paying more than 80% of taxes on alcohol and cigarettes. Total sin tax burdens are poorly explained by demographics (including income), but are well explained by eight household clusters defined by purchasing...
Persistent link: https://www.econbiz.de/10012660071
We evaluate the 2017 Tax Cuts and Jobs Act. Combining reduced-form estimates from tax data with a global investment model, we estimate responses, identify parameters, and conduct counterfactuals. Domestic investment of firms with the mean tax change increases 20% versus a no-change baseline. Due...
Persistent link: https://www.econbiz.de/10014512034
We study how tax policies that lower the cost of capital impact investment and labor demand. Difference-in-differences estimates using confidential US Census Data on manufacturing establishments show that tax policies increased both investment and employment, but did not lead to wage or...
Persistent link: https://www.econbiz.de/10012696394
This paper studies the coevolution of the fall in the US corporate sector labor share and the rise of business activity in tax-preferred, pass-through form. Reallocating activity to the form it would have taken prior to the Tax Reform Act of 1986 accounts for one third of the decline in the...
Persistent link: https://www.econbiz.de/10012660078
We trace the linkages between the episodes of fiscal expansion and consolidation in 72 advanced and emerging and developing economies. The findings suggest that fiscal expansions are positively associated with economic growth, which in turn is positively linked with better sustainable...
Persistent link: https://www.econbiz.de/10012794621
international migration patterns among the very wealthy, their impact on the economy, and how they respond to wealth taxation. We … large reforms, we then isolate the causal effect of wealth taxation on the international location choices of the wealthy. We …
Persistent link: https://www.econbiz.de/10014486244
The synthetic control method (SCM) is a popular approach for estimating the impact of a treatment on a single unit in panel data settings. The "synthetic control" is a weighted average of control units that balances the treated unit's pre-treatment outcomes and other covariates as closely as...
Persistent link: https://www.econbiz.de/10012585369
German municipalities levy local business taxes by choosing a tax rate to apply to local business income, where the tax base is defined uniformly at the national level. Before the federal government's imposition of a minimum tax rate in 2004, some municipalities such as the tiny North Sea town...
Persistent link: https://www.econbiz.de/10014287326
This paper studies how gradualism affects the welfare gains from trade, technology, and reforms. When people face adjustment frictions, gradual shocks create less adverse distributional effects in the short run. We show that there are welfare gains from inducing a more gradual transition via...
Persistent link: https://www.econbiz.de/10013477247
Despite the low levels of taxation and public good provision in Africa, I provide evidence that a large proportion of … Africans prefer lower taxation and fewer public goods. This cannot be explained by standard arguments about problems of … its potential threats to the autonomy of society. I show the historic social contracts in Africa rarely featured taxation …
Persistent link: https://www.econbiz.de/10013191019