Creator: Dahl, David S. and Gane, Samuel H. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 129 Abstract:
An important contention of Proposition 13's proponents was that a tax reduction would boost economic activity. It is too early to ascertain whether or not this has happened in California. This study addresses the issue in a more general context by attempting to answer the question: Do state and local taxes affect economic growth? Economic theory tells us that a change in the level of state and local taxes might affect economic growth in a number of ways, but the direction of the net result is not obvious. The methodology used here is multiple regression analysis across states. The major contribution of this study is the use of other variables besides taxes to explain growth in personal income, reducing possible biases in the results of previous work in this area. The results of this study indicate that state and local taxes may be a significant deterrent to growth in personal income.
Stichwort: Proposition 13, Income tax, Property tax, and Personal income Fach: H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes and H71 - State and Local Taxation, Subsidies, and Revenue
Creator: Bryant, John B. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 177 Beschreibung:
"Nominal labor contracts replicate net of tax real contracts contingent on aggregate risk in the model presented. Perhaps this is a model of money." (title page note)
Stichwort: Income tax, Inflation tax, Labor economics, and Wages Fach: C68 - Computable General Equilibrium Models and J41 - Labor Contracts
Creator: Krusell, Per, Quadrini, Vincenzo, and Ríos-Rull, José-Víctor Series: Lucas expectations anniversary conference Abstract:
We use political-equilibrium theory and the neoclassical growth model to compare the quantitative properties of different tax systems. We first explore whether societies which can only use consumption taxes fare better than societies which can only use income taxes. We find that if government outlays are used mainly for redistribution through transfers, then the answer is no, contradicting conventional wisdom in public finance. The reason for this is that when taxes are endogenous, and voted on by a selfish constituency, the distortionary effects of taxation are taken into account in choosing the level of taxation. Hence, political equilibria have the property that taxes which are relatively distortionary will be relatively low. These results are overturned if the government outlays are used only for the providing of public goods, implying that less distortionary taxes give better outcomes. We also investigate the properties of a tax systems in which both consumption and income taxes are used and voted on simultaneously. Since the ability to use more tax instruments allows redistribution with less distortions, the total amount of transfers tends to be higher here than in one-tax systems. Typically, tax systems tend to be self-perpetuating in the sense that changes of the tax system result in a reduction in the welfare of the median voter.
Stichwort: Tax system, Tax, Consumption tax, Taxes, and Income tax Fach: E62 - Fiscal Policy, H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes, and H25 - Business Taxes and Subsidies including sales and value-added (VAT)
Creator: Stutzer, Michael J. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 345 Stichwort: Tax distribution, Tax policy, Rental tax, Business tax, Tax systems, Tax burden, Property tax, and Income tax Fach: H20 - Taxation, Subsidies, and Revenue: General and H71 - State and Local Taxation, Subsidies, and Revenue
Creator: Braun, R. Anton Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 506 Abstract:
This paper investigates the macroeconomic effects of cyclical fluctuations in marginal tax rates. It finds that systematically including tax variables in a standard real business cycle model substantially improves the model's ability to reproduce basic facts about postwar U.S. business cycle fluctuations. In particular, modeling fluctuations in personal and corporate income tax rates increases the model's predicted relative variability of hours and decreases its predicted correlation between hours and average productivity. Fluctuations in tax rates produce large substitution effects that alter the leisure/labor supply decision.
Stichwort: Business cycle, Real business cycle model, Taxation, Productivity, Tax, Corporate tax , Income tax, Tax rates, and Taxes Fach: E32 - Business Fluctuations; Cycles, H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes, and H25 - Business Taxes and Subsidies including sales and value-added (VAT)