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...

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...

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...

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...

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....

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....

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...

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...

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...

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...

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 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...

In addition to raising revenue, tax systems have a key role to play in achieving countries' equity goals. An important first step in assessing whether a particular tax system is appropriately supporting those equity goals is to assess the degree of progressivity of the tax system. However,...

This paper studies how tax-and-transfer progressivity influences aggregate fluctuations when interacting with household heterogeneity. Using a simple static model of the extensive margin labor supply, we analytically characterize how a degree of progressivity influences differential labor supply...

Decentralized taxation and commuting affect numerous dimensions of economic activity, but how they jointly shape residential decisions and spatial income sorting is still not well understood. We develop a structural model of individual location choices in a fiscally decentralized monocentric...

America does not tax its richest citizens, such as Elon Musk or Jeff Bezos, at all. This Article argues that part of the reason is the paradox that under current income tax law and theory, taxing the rich would cost resources that could be made available to benefit the not-rich. The Article...

We evaluate a major personal income tax reform in Uganda that came into effect in 2012-13, contributing to the scarce literature on the effects of personal income tax reform on employees' income in a low-income country in Africa. The reform increased the tax-free lower threshold, increased tax...