scholarly journals Intertemporal Labor Supply Substitution? Evidence from the Swiss Income Tax Holidays

2021 ◽  
Vol 111 (2) ◽  
pp. 506-546
Author(s):  
Isabel Z. Martínez ◽  
Emmanuel Saez ◽  
Michael Siegenthaler
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
Tax Avoidance ◽  
The Self ◽  
Extensive Margin ◽  
High Wage ◽  
Tax System ◽  
Swiss Cantons ◽  
Tax Holidays ◽  
Wage Earnings

This paper estimates intertemporal labor supply responses to two-year long income tax holidays staggered across Swiss cantons. Cantons shifted from an income tax system based on the previous two years’ income to a standard annual pay as you earn system, leaving two years of income untaxed. We find significant but quantitatively very small responses of wage earnings with an intertemporal elasticity of 0.025 overall. High wage income earners and especially the self-employed display larger responses with elasticities around 0.1 and 0.25, respectively, most likely driven by tax avoidance. We find no effects along the extensive margin at all. (JEL H24, H26, J22, J23, J31, R23)

Income Tax, Wage Tax, and Optimal Tax

1976 ◽  
Vol 4 (1) ◽  
pp. 3-15
Author(s):  
Eitan Berglas
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
High Income ◽  
Tax System ◽  
Wage Subsidies ◽  
Optimal Tax ◽  
Negative Income ◽  
Aggregation Problem ◽  
Wage Tax ◽  
Negative Income Tax

Recent studies find wage subsidies (WS) to be superior to negative income tax (NIT). However, these studies suffer from a serious aggregation problem. A model is suggested in which these aggregation problems are avoided. In this model there exists a WS schedule that increases labor supply compared with an equally costly NIT. However, the WS may be Pareto inferior. Furthermore, for high income workers given any income tax system it is always possible to find a wage tax system which both is Pareto superior and increases labor supply. The merits of the model and its implications for other optimal income tax studies are critically discussed.

scholarly journals Using Differences in Knowledge Across Neighborhoods to Uncover the Impacts of the EITC on Earnings

2013 ◽  
Vol 103 (7) ◽  
pp. 2683-2721 ◽  
Author(s):  
Raj Chetty ◽  
John N Friedman ◽  
Emmanuel Saez
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
Local Variation ◽  
Tax Credit ◽  
Intensive Margin ◽  
Earned Income ◽  
Self Employment ◽  
High Knowledge ◽  
Wage Earnings ◽  
Zip Code

We estimate the impacts of the Earned Income Tax Credit on labor supply using local variation in knowledge about the EITC schedule. We proxy for EITC knowledge in a Zip code with the fraction of individuals who manipulate reported self-employment income to maximize their EITC refund. This measure varies significantly across areas. We exploit changes in EITC eligibility at the birth of a child to estimate labor supply effects. Individuals in high-knowledge areas change wage earnings sharply to obtain larger EITC refunds relative to those in low-knowledge areas. These responses come primarily from intensive-margin earnings increases in the phase-in region. (JEL H23, H24, H31, J22, J23, J31)

scholarly journals KE (TIDAK) PATUHAN WAJIB PAJAK: POTRET SELF ASSESSMENT SYSTEM

2017 ◽  
Vol 20 (3) ◽  
pp. 280
Author(s):  
Erlina Diamastuti
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Assessment System ◽  
The Self ◽  
Self Assessment ◽  
Tax System ◽  
Key Informant ◽  
The Government ◽  
Tax Payers

This study aims to interpretation the behavior of tax payers in carrying out his tax liability.x As we all know the tax system in Indonesia adheres to the self assessment system. In this system the government entrust all calculation, payment and reporting of tax payable on tax payers. As a result of various behaviors appear to express this practice of self assessment system The study used a non-positivistic with decriptive approche to observe phenomena that exist in the practice of taxation. The main source of data in this study are the words and actions derived from key informant as much as 5 of the 20 informants. The results of this study show that the first, self-assessment system led to the emergence of behavioral tax avoidance, tax evasion and tax arrearage. Second, self-assessment system requires an awareness not of necessity in creating a compliance and noncompliance WP led the government last act of hostage (Gijzeling)

scholarly journals Tuition Fees and the Dual Income Tax: The Optimality of the Nordic Income Tax System Reconsidered

2011 ◽  
Vol 12 (1) ◽  
pp. 59-84 ◽  
Author(s):  
Dirk Schindler
Keyword(s):  
Labor Supply ◽  
Educational Policy ◽  
Income Tax ◽  
Skilled Labor ◽  
Educational Investment ◽  
Unskilled Labor ◽  
Tax System ◽  
Dual Income Tax ◽  
Optimal Tax ◽  
Dual Income

Abstract We examine the optimal tax and education policy in the case of a dual income tax. Incorporating an educational sector and endogenous capital taxation, we show that the results in Nielsen and Sørensen’s study are vulnerable with respect to assumptions on the elasticity of unskilled labor supply. Tax progressivity results residually, whereas educational policy guarantees an optimal tax wedge on, but not necessarily efficiency in, educational investment. The less elastic are the unobservable educational investment and skilled labor (the latter relative to unskilled labor supply), and the more educational policy cares about the skilled labor supply, the more progressive the tax system will be. Education will be subsidized on a net basis if the complementarity effect on the skilled labor supply is strong and important; however, there is also an offsetting substitutability effect of the unskilled labor supply at play.

scholarly journals The optimal top marginal tax rate: Application to Hungary

2013 ◽  
Vol 2 (2) ◽  
pp. 100 ◽  
Author(s):  
Aron Kiss
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
Income Taxation ◽  
Actual Rate ◽  
Personal Income Tax ◽  
Marginal Tax Rate ◽  
Optimal Income Taxation ◽  
Tax System ◽  
Tax Rate ◽  
Recent Developments

The paper applies recent developments in the theory of optimal income taxation to the Hungarian personal income tax system. The main conclusion is that the optimal top marginal tax rate in Hungary is likely to be higher, perhaps substantially, than the actual rate. It is discussed how this result depends on the parameters describing labor-supply behavior, the income distribution, and the redistributive preferences of society.

scholarly journals Intertemporal Labor Supply Substitution? Evidence from the Swiss Income Tax Holidays

2018 ◽  
Author(s):  
Isabel Martinez ◽  
Emmanuel Saez ◽  
Michael Siegenthaler
Keyword(s):  
Labor Supply ◽  
Income Tax ◽  
Tax Holidays

TAX FOR THE SELF-EMPLOYED: PROS AND CONS

2020 ◽  
Author(s):  
S.S. Hasanova ◽  
R.R. Hatueva ◽  
A.L. Arsaev
Keyword(s):  
Income Tax ◽  
The State ◽  
The Self ◽  
State Budget ◽  
Self Employment ◽  
Time Work ◽  
Part Time ◽  
Pros And Cons ◽  
Crisis Conditions ◽  
Part Time Work

This article discusses the pros and cons of applying professional income tax. Professional income tax is not mandatory, but an alternative way to pay 2 taxes on self-employment or part-time work. The introduction of this tax can mediate an increase in revenues to the state budget, which is of particular importance for the country in post-crisis conditions.

The Tax System and Labor Supply

2009 ◽  
Vol 36 (1) ◽  
pp. 106-136 ◽  
Author(s):  
Masayoshi Hayashi
Keyword(s):  
Labor Supply ◽  
Tax System
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