Agrawal, David R.
State taxation of nonresident income and the location of work / by David R. Agrawal and Kenneth Tester
Resumen.
Bibliografía.
Prior studies show that taxes matter for the residential locations of high-income earners. But states raise a significant share of revenue from nonresidents. Using variation in state tax rates, we provide causal evidence on the effect of the net-of-tax rate on the location of labor supply for professional golfers. State taxes induce high-income earners to shift employment to low-tax states without a residence change. The elasticity of working in a state is 0.34 and, consistent with the superstar phenomenon, increases with earnings. Our results suggest a novel margin of mobility responses for top earners: the spatial relocation of labor supply by nonresidents.
IMPUESTO SOBRE LA RENTA DE NO RESIDENTES
CAPACIDAD FISCAL
INGRESOS FISCALES
MIGRACIONES INTERIORES
MOVILIDAD LABORAL
INCENTIVOS FISCALES
ESTADOS UNIDOS
Tester, Kenneth
American Economic Journal : Economic Policy 1945-7731 v. 16, n. 1, February 2024, p. 447-481
State taxation of nonresident income and the location of work / by David R. Agrawal and Kenneth Tester
Resumen.
Bibliografía.
Prior studies show that taxes matter for the residential locations of high-income earners. But states raise a significant share of revenue from nonresidents. Using variation in state tax rates, we provide causal evidence on the effect of the net-of-tax rate on the location of labor supply for professional golfers. State taxes induce high-income earners to shift employment to low-tax states without a residence change. The elasticity of working in a state is 0.34 and, consistent with the superstar phenomenon, increases with earnings. Our results suggest a novel margin of mobility responses for top earners: the spatial relocation of labor supply by nonresidents.
IMPUESTO SOBRE LA RENTA DE NO RESIDENTES
CAPACIDAD FISCAL
INGRESOS FISCALES
MIGRACIONES INTERIORES
MOVILIDAD LABORAL
INCENTIVOS FISCALES
ESTADOS UNIDOS
Tester, Kenneth
American Economic Journal : Economic Policy 1945-7731 v. 16, n. 1, February 2024, p. 447-481