Miao, Dingquan
Earnings responses to even higher taxes open access / Dingquan Miao, Håkan Selin, Martin Söderström
Bibliografía.
We exploit a recent Swedish tax reform, implying higher marginal tax rates for the top 5% of the earnings distribution, to learn about earnings responses to higher taxes. Using a simple and graphical cross-sectional method, we estimate an earnings elasticity of 0.16, evaluated four years after the reform. Our analysis indicates that the response is driven by adjustments in wage rates, and not by changes to hours, job switches or income shifting. We interpret the magnitude and preciseness of the response using a realistically calibrated simulation model in which people face uncertain marginal tax rates due to earnings dynamics.
SUECIA
REFORMA
IMPUESTO SOBRE LA RENTA DE LAS PERSONAS FISICAS
IMPUESTO SOBRE SUCESIONES Y DONACIONES
DISTRIBUCION
Selin, Hakan
Söderström, Martin
The Economic Journal 0013-0133 [papel] v. 135, n. 667, April 2025, p. 838-860
Earnings responses to even higher taxes open access / Dingquan Miao, Håkan Selin, Martin Söderström
Bibliografía.
We exploit a recent Swedish tax reform, implying higher marginal tax rates for the top 5% of the earnings distribution, to learn about earnings responses to higher taxes. Using a simple and graphical cross-sectional method, we estimate an earnings elasticity of 0.16, evaluated four years after the reform. Our analysis indicates that the response is driven by adjustments in wage rates, and not by changes to hours, job switches or income shifting. We interpret the magnitude and preciseness of the response using a realistically calibrated simulation model in which people face uncertain marginal tax rates due to earnings dynamics.
SUECIA
REFORMA
IMPUESTO SOBRE LA RENTA DE LAS PERSONAS FISICAS
IMPUESTO SOBRE SUCESIONES Y DONACIONES
DISTRIBUCION
Selin, Hakan
Söderström, Martin
The Economic Journal 0013-0133 [papel] v. 135, n. 667, April 2025, p. 838-860