Taxpayer Reporting Responses and the Tax Reform Act of 1986
AbstractThis paper examines the effects of the Tax Reform Act of 1986 on the reporting decisions of taxpayers, using microlevel information from the 1984 and 1989 Statistics of Income. We find that tax reform clearly mattered in the reporting decisions of individuals, with reporting elasticities that cluster between 0.3 and 0.7. However, our results also indicate that individuals' estimated responses vary in different ways for individuals with different income levels, in ways that differ by the types of incomes received by taxpayers, in ways that are sensitive to the estimation approach, and in ways that depend upon data adjustment methods.
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Bibliographic InfoPaper provided by Tulane University, Department of Economics in its series Working Papers with number 1109.
Length: 37 pages
Date of creation: Apr 2011
Date of revision:
Tax Reform Act of 1986; income reporting; taxable income elasticity; quantile regression;
Find related papers by JEL classification:
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-04-23 (Accounting & Auditing)
- NEP-ALL-2011-04-23 (All new papers)
- NEP-PBE-2011-04-23 (Public Economics)
- NEP-PUB-2011-04-23 (Public Finance)
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