Effective Marginal Tax Rates for US Investors in Germany and Europe - An Analysis of Recent Tax Reforms in Germany

Tax Reforms and Intertemporal Shifting of Wage Income: Evidence from Danish Monthly Payroll Records

American Economic Journal Economic Policy ◽

10.1257/pol.20140233 ◽

2016 ◽

Vol 8 (3) ◽

pp. 233-257 ◽

Cited By ~ 8

Author(s):

Claus Thustrup Kreiner ◽

Søren Leth-Petersen ◽

Peer Ebbesen Skov

Keyword(s):

Tax Reform ◽

Liquidity Constraints ◽

Labor Income ◽

Tax Rates ◽

Tax Reforms ◽

Taxable Income ◽

Elasticity Of Taxable Income ◽

Marginal Tax Rates ◽

Willingness To Cooperate ◽

Wage Income

This paper uses monthly payroll records for all Danish employees to identify widespread intertemporal shifting of labor income in response to a tax reform that significantly reduced the marginal tax rates for one-fourth of all employees. When ignoring shifting, the estimate of the overall elasticity of taxable income equals 0.1, and the elasticity is increasing with earnings. When removing the shifting component, the elasticity is close to zero at all earnings levels. The evidence also indicates that tax salience, liquidity constraints and firm willingness to cooperate in shifting are important factors in explaining shifting behavior. (JEL H24, H31, J22, J31)

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BEHAVIORAL REACTION TO THE 2008 INCOME TAX REFORM IN INDONESIA: A BUNCHING ANALYSIS

INFO ARTHA ◽

10.31092/jia.v4i2.638 ◽

2020 ◽

Vol 4 (2) ◽

pp. 1

Author(s):

Chandra Tris Fajar Uji Putra ◽

Ralp-Christopher Bayer

Keyword(s):

Income Tax ◽

Tax Reform ◽

Tax Rates ◽

Lower Income ◽

Tax Reforms ◽

Behavioral Reaction ◽

Special Cases ◽

Marginal Tax Rates ◽

Tax Payments ◽

Income Tax Reform

Income tax reforms generally constitute some changes in marginal tax rates and its income thresholds which often lead to a higher tax liability. Taxpayers may respond to these changes differently, mainly by trying to lower their tax payments. Self-employed individuals have a greater incentive to strategically adjust to a lower income declaration. Using administrative tax data, this paper examines the reaction of self-employed taxpayers to the 2008 Indonesian Income Tax Reform using bunching analysis. Beside a clear evidence on bunching around the first kink point, our empirical findings suggest that Indonesia exhibits special cases. We find an inertia of pre-reform bunching around the first kink point in later years as well as an extraordinary bunching above the first kink point in the post-reform periods.

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