that will accrue in retirement and excluding items included in the CBO income estimates such as "corporate taxes borne by … colloquial is referred to as the "hollowing out" of the middle class. According to these estimates, the income of the middle …. Even that meager rate was achieved only through substantial transfer payments. In contrast, the income of the top 1% grew …

Economists have long been aware of utility externalities such as a tendency to compare own income with others'. If … welfare losses from income comparisons are significant, any governmental interventions that alter such attitudes may have … comparing income with others may diminish welfare even when income levels increase makes UK respondents compare incomes more …

This paper considers dynamic optimal income, education, and bequest taxes in a Barro-Becker dynastic setup. Parents can …. It is in general not optimal to make education expenses fully tax deductible and the optimal education subsidy, income …

We estimate the elasticity of reported income with respect to tax rates for high earners using subnational variation …. We find that elasticities of reported income at the provincial level are large for incomes in the top one percent, but … small for lower earners. There are strong indications that the response happens both through earned and capital income …

Atkinson, Piketty, and Saez (2011) survey an important new literature using income tax-based data to measure the share … of income held by top income groups. But changes in tax legislation that expand the tax base to include income sources (e … the share of income they hold. We provide a cautionary tale from Australia of how comprehensive tax reform legislation in …

Recent research on United States levels and trends in income inequality vary substantially in how they measure income …. Piketty and Saez (2003) examine market income of tax units based on IRS tax return data, DeNavas-Walt, Proctor, and Smith … (2012) and most CPS-based research uses pre-tax, post-transfer cash income of households, while the CBO (2012) uses both …

This paper studies the cyclical nature of individual income risk using a confidential dataset from the U.S. Social … individual income growth during recessions into "between-group" and "within-group" components. We begin with the behavior of … within-group shocks. Contrary to past research, we do not find the variance of idiosyncratic income shocks to be …