On Estimating Marginal Tax Rates For U.S. States
AbstractThis paper presents a procedure for generating state-specific time-varying estimates of marginal tax rates (MTRs). Most estimates of MTRs follow a procedure developed by Koester and Kormendi (1989) (K&K). Unfortunately, the time-invariant nature of the K&K estimates precludes their use as explanatory variables in panel data studies with fixed effects. Furthermore, the associated MTR estimates are not explicitly linked to statutory tax parameters. Our approach addresses both shortcomings. Using comprehensive tax policy data, we estimate state-specific, time-varying MTRs for all 50 states over the years 1977–2004. The inclusion of statutory tax variables has a significant impact on MTR estimates.
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): 64 (2011)
Issue (Month): 1 (March)
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.:
- John Creedy & Norman Gemmell, 2004. "The Income Elasticity of Tax Revenue: Estimates for Income and Consumption Taxes in the United Kingdom," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 25(1), pages 55-77, March.
- Feldstein, Martin, 2002. "The Transformation of Public Economics Research: 1970-2000," Scholarly Articles 2797442, Harvard University Department of Economics.
- Emmanuel Saez & Joel B. Slemrod & Seth H. Giertz, 2009.
"The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review,"
NBER Working Papers
15012, National Bureau of Economic Research, Inc.
- Emmanuel Saez & Joel Slemrod & Seth H. Giertz, 2012. "The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 50(1), pages 3-50, March.
- Skidmore, Mark, 1999. " Tax and Expenditure Limitations and the Fiscal Relationships between State and Local Governments," Public Choice, Springer, Springer, vol. 99(1-2), pages 77-102, April.
- Easterly, William & Rebelo, Sergio, 1993.
"Marginal income tax rates and economic growth in developing countries,"
European Economic Review, Elsevier,
Elsevier, vol. 37(2-3), pages 409-417, April.
- Easterly, William & Rebelo, Sergio, 1992. "Marginal income tax rates and economic growth in developing countries," Policy Research Working Paper Series, The World Bank 1050, The World Bank.
- Padovano, Fabio & Galli, Emma, 2002. "Comparing the growth effects of marginal vs. average tax rates and progressivity," European Journal of Political Economy, Elsevier, Elsevier, vol. 18(3), pages 529-544, September.
- Merriman, David & Skidmore, Mark, 2000. "Did Distortionary Sales Taxation Contribute to the Growth of the Service Sector?," National Tax Journal, National Tax Association, National Tax Association, vol. 53(n. 1), pages 125-42, March.
- Daniel Feenberg & Elisabeth Coutts, 1993. "An introduction to the TAXSIM model," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 12(1), pages 189-194.
- Nichols, Mark W. & Tosun, Mehmet Serkan, 2008. "The Income Elasticity of Gross Casino Revenues: Short–Run and Long–Run Estimates," National Tax Journal, National Tax Association, National Tax Association, vol. 61(4), pages 635-52, December.
- Feldstein, Martin, 2002. "The transformation of public economics research: 1970-2000," Journal of Public Economics, Elsevier, Elsevier, vol. 86(3), pages 319-326, December.
- Creedy, John & Gemmell, Norman, 2014. "Measuring Revenue-Maximising Elasticities of Taxable Income: Evidence for the US Income Tax," Working Paper Series 3137, Victoria University of Wellington, Chair in Public Finance.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright).
If references are entirely missing, you can add them using this form.