Do Tax Cuts Promote Entrepreneurial Longevity?
AbstractWe use a 12–year panel of tax return data to assess whether or not taxes affect the duration of entrepreneurial activities. Our study is the first to examine the effects of tax rates on exit decisions using duration–analysis techniques. We find convincing evidence that cutting marginal tax rates faced by wage–and–salary workers can reduce the duration of entrepreneurial activities, while cutting marginal tax rates faced by entrepreneurs can lengthen entrepreneurial spells. The relative magnitudes of these effects suggest that an across–the–board tax cut would increase entrepreneurial longevity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by National Tax Association in its journal National Tax Journal.
Volume (Year): 61 (2008)
Issue (Month): 2 (June Citation: 61 National Tax Journal 225-50 (June 2008))
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bruce, Donald, 2000. "Effects of the United States tax system on transitions into self-employment," Labour Economics, Elsevier, vol. 7(5), pages 545-574, September.
- Schuetze, Herb J., 2000.
"Taxes, economic conditions and recent trends in male self-employment: a Canada-US comparison,"
Elsevier, vol. 7(5), pages 507-544, September.
- Herb J. Schuetze, . "Taxes, Economic Conditions And Recent Trends in Male Self-Employment: A Canada-U.S. Comparison," Canadian International Labour Network Working Papers 11, McMaster University.
- Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 2000.
"Personal Income Taxes and the Growth of Small Firms,"
NBER Working Papers
7980, National Bureau of Economic Research, Inc.
- Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 2001. "Personal Income Taxes and the Growth of Small Firms," NBER Chapters, in: Tax Policy and the Economy, Volume 15, pages 121-148 National Bureau of Economic Research, Inc.
- Anna L. Paulson & Robert M. Townsend & Alexander Karaivanov, 2006. "Distinguishing Limited Liability from Moral Hazard in a Model of Entrepreneurship," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 100-144, February.
- Jamaes P. Ziliak & Thomas J. Kniesner, 2003.
"The Effect of Income Taxation on Consumption and Labor Supply,"
Center for Policy Research Working Papers
54, Center for Policy Research, Maxwell School, Syracuse University.
- James P. Ziliak & Thomas J. Kniesner, 2005. "The Effect of Income Taxation on Consumption and Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 769-796, October.
- Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 1998. "Entrepreneurs, Income Taxes, and Investment," NBER Working Papers 6374, National Bureau of Economic Research, Inc.
- José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
- Ricjard Kneller & Danny McGowan, .
"Tax Policy and Firm Entry and Exit Dynamics: Evidence from OECD Countries,"
12/01, University of Nottingham, School of Economics.
- Richard Kneller & Danny McGowan, 2012. "Tax Policy and Firm Entry and Exit Dynamics: Evidence from OECD Countries," Working Papers 12006, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
- Richard Kneller & Danny McGowan, . "Tax Policy and Firm Entry and Exit Dynamics: Evidence from OECD Countries," Discussion Papers 11/08, University of Nottingham, School of Economics.
- Tami Gurley-Calvez & Brian Hill, 2011. "Time to Retire? The Effect of State Fiscal Policies on Retirement Decisions," American Economic Review, American Economic Association, vol. 101(3), pages 35-39, May.
- José María Millán & Emilio Congregado & Concepción Román, 2010. "Determinants of Self-Employment Dynamics and their Implications on Entrepreneurial Policy Effectiveness," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 72, pages 45-76.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.