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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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    File URL: https://www.cbo.gov/sites/default/files/108th-congress-2003-2004/workingpaper/2004-16_0.pdf
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