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Lifetime Incidence and the Distributional Burden of Excise Taxes

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  • Poterba, James M

Abstract

This implies that low-income households in one year have some chance of being higher-income households in other years, and significantly affects the estimated distributional burden of excise taxes. This paper shows that household expenditures on gasoline, alcohol, and tobacco as a share of total consumption (a proxy for lifetime income) are much more equally distributed than expenditures as a share of annual income. From a longer-horizon perspective, excise taxes on these goods are therefore much less regressive than standard analyses suggest.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

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  • Poterba, James M, 1989. "Lifetime Incidence and the Distributional Burden of Excise Taxes," American Economic Review, American Economic Association, vol. 79(2), pages 325-330, May.
    • Handle: RePEc:aea:aecrev:v:79:y:1989:i:2:p:325-30
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    1. Driffill, E John & Rosen, Harvey S, 1983. "Taxation and Excess Burden: A Life Cycle Perspective," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 671-683, October.
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    10. repec:fth:prinin:240 is not listed on IDEAS
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