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Recent Literature on Taxable-Income Elasticities: Technical Paper 2004-16

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  • Seth H. Giertz

Abstract

This paper reviews the literature on taxable-income elasticities, focusing primarily on empirical studies examining the U.S. tax changes of 1981, 1986, 1990, and 1993 and the bracket creep of the late 1970s and early 1980s. The paper first provides background on the importance of the elasticity of taxable income both for forecasting income tax revenue and for assessing the efficiency implications of tax rate changes. It then discusses the major methodological issues and obstacles before delving into the literature. The paper emphasizes the different methodologies employed

Suggested Citation

  • Seth H. Giertz, 2004. "Recent Literature on Taxable-Income Elasticities: Technical Paper 2004-16," Working Papers 16189, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:16189
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    Cited by:

    1. Áron Kiss & Pálma Mosberger, 2015. "The elasticity of taxable income of high earners: evidence from Hungary," Empirical Economics, Springer, vol. 48(2), pages 883-908, March.
    2. Varga, Gergely & Nobilis, Benedek & Svraka, András, 2018. "Adóköteles jövedelmek rugalmassága – egy identifikációs kísérlet a családi adókedvezmény 2011-es bevezetése alapján [Elasticity of Taxable Income: An Experiment for Identification Based on the Intr," MPRA Paper 88229, University Library of Munich, Germany.
    3. Carina Neisser, 2017. "The elasticity of taxable income: A meta-regression analysis," Working Papers 2017/10, Institut d'Economia de Barcelona (IEB).
    4. Jos順鬩x Sanz-Sanz & Mar, 2015. "Reported gross income and marginal tax rates: estimation of the behavioural reactions of Spanish taxpayers," Applied Economics, Taylor & Francis Journals, vol. 47(5), pages 466-484, January.
    5. Lang (Kate) Yang & Bradley T. Heim, 2017. "Responsiveness of Income to Local Income Taxes: Evidence from Indiana," National Tax Journal, National Tax Association;National Tax Journal, vol. 70(2), pages 367-392, June.
    6. Arrazola, María & de Hevia, José & Romero, Desiderio & Sanz-Sanz, José Félix, 2014. "Personal Income Tax Reforms and the Elasticity of Reported Income to Marginal Tax Rates: An Empirical Analysis Applied to Spain," Working Paper Series 3593, Victoria University of Wellington, Chair in Public Finance.
    7. 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.
    8. Sophia Igdalov & Roni Frish & Noam Zussman, 2017. "The Wage Response to a Reduction in Income Tax Rates: The 2003–2009 Tax Reform in Israel," Bank of Israel Working Papers 2017.14, Bank of Israel.

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