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On the Progressivity of the Child Care Tax Credit: Snapshot Versus Time-Exposure Incidence

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  • Altshuler, Rosanne
  • Schwartz, Amy Ellen

Abstract

Uses both annual and time-exposure income to measure the incidence of the child care credit. Finds that replacing annual with time-exposure income increases the proportion of the credit received by low-income taxpayers and yields a more even distribution of benefits across middle and upper income tax payers.

Suggested Citation

  • Altshuler, Rosanne & Schwartz, Amy Ellen, 1996. "On the Progressivity of the Child Care Tax Credit: Snapshot Versus Time-Exposure Incidence," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(1), pages 55-71, March.
    • Handle: RePEc:ntj:journl:v:49:y:1996:i:1:p:55-71
    DOI: 10.1086/NTJ41789185
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    1. H. Chernick & A. Reschovsky, "undated". "Is the gasoline tax regressive?," Institute for Research on Poverty Discussion Papers 980-92, University of Wisconsin Institute for Research on Poverty.
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    3. Dunbar, Amy & Nordhauser, Susan, 1991. "Is the Child Care Credit Progressive?," National Tax Journal, National Tax Association, vol. 44(4), pages 519-28, December.
    4. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, March.
    5. Martin Feldstein & James M. Poterba, 1996. "Empirical Foundations of Household Taxation," NBER Books, National Bureau of Economic Research, Inc, number feld96-1, March.
    6. Attiat Ott & Ludwig O. Dittrich, 1981. "The Federal Income Tax Burden on Households: The Effects of Tax Law Changes," Books, American Enterprise Institute, number 973316, September.
    7. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    8. Dunbar, Amy & Nordhauser, Susan, 1991. "Is the Child Care Credit Progressive?," National Tax Journal, National Tax Association;National Tax Journal, vol. 44(4), pages 519-528, December.
    9. Barthold, Thomas A., 1993. "How Should We Measure Distribution?," National Tax Journal, National Tax Association;National Tax Journal, vol. 46(3), pages 291-299, September.
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    Cited by:

    1. Duclos, Jean-Yves, 1998. "Social evaluation functions, economic isolation and the Suits index of progressivity," Journal of Public Economics, Elsevier, vol. 69(1), pages 103-121, July.
    2. Duclos, J.Y., 1995. "Economic Isolation, Inequality, and the Suits Index of Progressivity," Papers 9510, Laval - Recherche en Politique Economique.
    3. William M. Gentry & Alison P. Hagy, 1996. "The Distributional Effects of the Tax Treatment of Child Care Expenses," NBER Chapters, in: Empirical Foundations of Household Taxation, pages 99-134, National Bureau of Economic Research, Inc.
    4. Dickert–Conlin, Stacy & Fitzpatrick, Katie & Hanson, Andrew, 2005. "Utilization of Income Tax Credits by Low–Income Individuals," National Tax Journal, National Tax Association;National Tax Journal, vol. 58(4), pages 743-785, December.
    5. Elin Halvorsen & Thor O. Thoresen, 2021. "Distributional Effects of a Wealth Tax under Lifetime‐Dynastic Income Concepts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(1), pages 184-215, January.
    6. Ann Dryden Witte & Marisol Trowbridge, 2005. "The Structure of Early Care and Education in the United States: Historical Evolution and International Comparisons," NBER Chapters, in: Tax Policy and the Economy, Volume 19, pages 1-38, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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