scholarly journals The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States: Reply

2019 ◽  
Vol 109 (7) ◽  
pp. 2679-2691 ◽  
Author(s):  
Karel Mertens ◽  
Morten O. Ravn
Keyword(s):  
United States ◽  
Income Tax ◽  
The United States ◽  
Corporate Income Tax ◽  
Dynamic Effects ◽  
Valid Inference ◽  
Macroeconomic Effects ◽  
Tax Changes ◽  
Inference Methods

In this reply to a comment by Jentsch and Lunsford, we show that the evidence for economic and statistically significant macroeconomic effects of tax changes in Mertens and Ravn (2013) remains present for a range of asymptotically valid inference methods. (JEL E23, E62, H24, H25, H31, H32)

scholarly journals The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States

2013 ◽  
Vol 103 (4) ◽  
pp. 1212-1247 ◽  
Author(s):  
Karel Mertens ◽  
Morten O Ravn
Keyword(s):  
United States ◽  
Income Tax ◽  
The United States ◽  
Income Taxes ◽  
Dynamic Effects ◽  
Different Types ◽  
Short Run ◽  
Tax Shocks ◽  
Tax Changes ◽  
Narrative Account

This paper estimates the dynamic effects of changes in taxes in the United States. We distinguish between changes in personal and corporate income taxes and develop a new narrative account of federal tax liability changes in these two tax components. We develop an estimator which uses narratively identified tax changes as proxies for structural tax shocks and apply it to quarterly post-WWII data. We find that short run output effects of tax shocks are large and that it is important to distinguish between different types of taxes when considering their impact on the labor market and on expenditure components. (JEL E23, E62, H24, H25, H31, H32)

scholarly journals Discretionary Tax Changes and the Macroeconomy: New Narrative Evidence from the United Kingdom

2013 ◽  
Vol 103 (4) ◽  
pp. 1507-1528 ◽  
Author(s):  
James Cloyne
Keyword(s):  
United States ◽  
United Kingdom ◽  
The United States ◽  
Policy Changes ◽  
Narrative Strategy ◽  
The United Kingdom ◽  
Macroeconomic Effects ◽  
The Uk ◽  
Tax Changes ◽  
Strategy I

This paper provides new estimates of the macroeconomic effects of tax changes using a new narrative dataset for the United Kingdom. Identification is achieved by isolating “exogenous” tax policy changes using the Romer and Romer narrative strategy. I find that a 1 percent cut in taxes increases GDP by 0.6 percent on impact and 2.5 percent over three years. The findings are remarkably similar to Romer and Romer narrative estimates for the United States, reinforcing the view that tax changes have powerful and persistent effects. “Exogenous” tax changes are also shown to have contributed to important episodes in the UK business cycle. (JEL E23, E32, E62, H20, H61)

scholarly journals The Impact of United States Tax Policies on Sectoral Foreign Direct Investment to Asia

2020 ◽  
Author(s):  
Valerie Mercer-Blackman ◽  
Shiela Camingue-Romance
Keyword(s):  
United States ◽  
Foreign Direct Investment ◽  
Income Tax ◽  
Direct Investment ◽  
The United States ◽  
Business Environment ◽  
Corporate Income Tax ◽  
Market Size ◽  
Tax Rate ◽  
The Impact

Using panel data at the country and sector level spanning almost 15 years, this paper shows that the corporate income tax rate does not affect the United States’ inward foreign direct investment once market size, costs, openness, and the business environment, are taken into account. This is true for United States foreign direct investment bound to developing Asia and across most sectors.

US tax plans threaten Mexican manufacturing

2018 ◽  
Keyword(s):  
United States ◽  
Income Tax ◽  
Direct Investment ◽  
The United States ◽  
Manufacturing Firms ◽  
Corporate Income Tax ◽  
Automated Manufacturing ◽  
Tax Reforms ◽  
Content Type ◽  
Capital Intensive

Subject Impact of US tax plans on Mexico. Significance US tax reforms have put Mexico’s competitiveness under pressure, slashing US corporate income tax and creating additional incentives for capital-intensive investments. The new rules are especially relevant for manufacturing firms which form Mexico’s largest source of foreign direct investment (FDI) but are the recipients of the some of the plan’s most generous benefits. Impacts The tax plan may accelerate more capital-intensive, highly automated manufacturing investment in the United States. The erosion of Mexico’s tax advantage will reinforce pressure to keep wages low, exacerbating political tensions. Pressure from Mexican business for a parallel tax cut is likely to mount as the elections approach.

The Income Tax in Great Britain and the United States.

1927 ◽  
Vol 37 (148) ◽  
pp. 637
Author(s):  
J. Sykes ◽  
Harrison B. Spaulding
Keyword(s):  
United States ◽  
Great Britain ◽  
Income Tax ◽  
The United States
Sign in / Sign up

Export Citation Format

Share Document