Tax progressivity and top incomes : evidence from tax reforms / Enrico Rubolino (Uppsala University), Daniel Waldenström (IFN, Paris School of Economics, CEPR and IZA) ; IZA, Institute of Labor Economics
VerfasserRubolino, Enrico In Wikipedia suchen nach Enrico Rubolino ; Waldenström, Daniel In der Gemeinsamen Normdatei der DNB nachschlagen In Wikipedia suchen nach Daniel Waldenström
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen In Wikipedia suchen nach Forschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, March 2017
Elektronische Ressource
Umfang1 Online-Ressource (59 Seiten) : Diagramme
SerieDiscussion paper ; no. 10666
URNurn:nbn:de:hbz:5:2-120985 Persistent Identifier (URN)
 Das Dokument ist frei verfügbar.
Tax progressivity and top incomes [0.92 mb]
Verfügbarkeit In meiner Bibliothek

We study the link between tax progressivity and top income shares. Using variation from large-scale Western tax reforms in the 1980s and 1990s and the novel synthetic control method, we find large and lasting boosting impacts on top income shares from the progressivity reductions. Effects are largest in the very top groups while earners in the bottom half of the top decile were almost unaffected by the reforms. Cuts in top marginal tax rates account for most of this outcome whereas reduced overall progressivity contributed less. Searching for mechanisms, real income responses as measured by growth in aggregate GDP per capita, registered patents and tax revenues were unaffected by the reforms. By contrast, tax avoidance behavior related to the management of capital incomes in the very income top appears to lie behind the observed effects.