On Estimating Marginal Tax Rates for U.S. States
This 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.
Volume (Year): 64 (2011)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: 529 14th Street NW Suite 750, Washington DC 20045|
Web page: https://www.ntanet.org/
More information through EDIRC
References listed on IDEAS
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.:
- Easterly, William & Rebelo, Sergio, 1993.
"Marginal income tax rates and economic growth in developing countries,"
European Economic Review,
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 1050, The World Bank.
- Zsolt Becsi, 1996. "Do state and local taxes affect relative state growth?," Economic Review, Federal Reserve Bank of Atlanta, issue Mar, pages 18-36.
- 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, vol. 50(1), pages 3-50, March.
- Feldstein, Martin, 2002. "The transformation of public economics research: 1970-2000," Journal of Public Economics, Elsevier, vol. 86(3), pages 319-326, December.
- Daniel Feenberg & Elisabeth Coutts, 1993. "An introduction to the TAXSIM model," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(1), pages 189-194.
- Padovano, Fabio & Galli, Emma, 2002. "Comparing the growth effects of marginal vs. average tax rates and progressivity," European Journal of Political Economy, Elsevier, vol. 18(3), pages 529-544, September.
- repec:ntj:journl:v:53:y:2000:i:n._1:p:125-42 is not listed on IDEAS
- 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, vol. 61(4), pages 635-652, December.
- Skidmore, Mark, 1999. "Tax and Expenditure Limitations and the Fiscal Relationships between State and Local Governments," Public Choice, Springer, vol. 99(1-2), pages 77-102, April.
- Sobel, Russell S. & Holcombe, Randall G., 1996. "Measuring the Growth and Variability of Tax Bases Over the Business Cycle," National Tax Journal, National Tax Association, vol. 49(4), pages 535-552, December.
- 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, vol. 25(1), pages 55-77, March.
When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:64:y:2011:i:1:p:59-84. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (A. Sinan Unur)
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.