The elasticity of taxable income is a key tax policy parameter that plays an important role in the formulation of tax and transfer policy. This paper extends work by Kemp (2019) by using a new panel of individual tax returns and the phenomenon of 'bracket creep' to produce updated estimates of...

This Handbook entry presents a conceptual, normative overview of the subject of taxation. It emphasizes the relationships among the main functions of taxation—notably, raising revenue, redistributing income, and correcting externalities—and the mapping between these functions and various...

This paper reports estimates of the elasticity of taxable income with respect to the net-of-tax rate for New Zealand taxpayers. The elasticity of taxable income was estimated to be substantially higher for the highest income groups. Generally it was higher for men than for women. Changes in the...

We study how taxable income responds to changes in marginal tax rates, using as a main source of identifying variation three large reforms to the Spanish personal income tax implemented in the period 1999-2014. The most reliable estimates of the elasticity of taxable income (ETI) with respect to...

This paper examines the distributional outcomes of the tax parameters of the Australian income tax system within the framework of modern tax theory. The analysis focuses first on the parameters of the Personal Income Tax and Low Income Tax Offset. The results show that Australia has moved...

In order to have optimal tax compliance in the field of tax reporting, under our current paradigm, we need clearly articulated but salient standards for record keeping. The popular belief that taxpayers do not need to keep adequate records creates a behavior distortion of noncompliance. This...

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...

This paper characterises the Laffer curve of each individual taxpayer in a schedular multirate income tax with income shifting. Analytical expressions for the revenue-maximising tax rate and the revenue-maximising elasticity are provided for the individual taxpayer and the aggregate population,...