Tag Archives: Taxes

Business in the United States: Who Owns it and How Much Tax Do They Pay?

“Pass-through” businesses like partnerships and S-corporations now generate over half of U.S. business income and account for over half of the post-1980 rise in the top- 1% income share. We use administrative tax data from 2011 to identify pass-through business … Continue reading

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Jason Furman on Business Tax Reform

See here for new slides on business tax reform from Jason Furman. The text of his speech is here.

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Is the EITC as Good as an NIT? Conditional Cash Transfers and Tax Incidence

From Jesse Rothstein: The EITC is intended to encourage work. But EITC-induced increases in labor supply may drive wages down. I simulate the economic incidence of the EITC. In each scenario that I consider, a large portion of low-income single … Continue reading

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Optimal Wealth Taxation: Redistribution and Political Economy

Here are a few interesting links from Ivan Werning on capital taxation, Piketty, and political economy. 1. Optimal Wealth Taxation: Redistribution and Political Economy – slides from his plenary at SED 2014 2. A Reappraisal of Chamley-Judd Zero Capital Taxation … Continue reading

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The economic effects of territorial taxation, with remarks by Jason Furman

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The Behavioralist As Tax Collector: Using Natural Field Experiments to Enhance Tax Compliance

From Michael Hallsworth, John List, Robert Metcalfe, Ivo Vlaev: Tax collection problems date back to the earliest recorded history of mankind. This paper begins with a simple theoretical construct of paying (rather than declaring) taxes, which we argue has been an … Continue reading

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Poverty and the Tax Code

Sorry for light posting – I have been on the road this week and will be done traveling mid- next week. Here’s a nice article from Jason Furman on poverty reduction and tax credits.

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Weekend reading

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Optimal Tax Progressivity: An Analytical Framework

From Jonathan Heathcote, Kjetil Storesletten, Giovanni Violante: What shapes the optimal degree of progressivity of the tax and transfer system? On the one hand, a progressive tax system can counteract inequality in initial conditions and substitute for imperfect private insurance … Continue reading

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America risks becoming a Downton Abbey Economy

From Larry Summers: Inequality has emerged as a major issue in the US and beyond. A generation ago it could reasonably have been asserted that the overall growth rate of the economy was the main influence on the growth in … Continue reading

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