Tax cuts for whom? heterogeneous effects of income tax changes on growth and employment Owen Zidar
By: Zidar, Owen
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Material type: 
ArticlePublisher: 2019Subject(s): IMPUESTOS | REDUCCIONES TRIBUTARIAS | POLITICA FISCAL | REFORMA | ESTADOS UNIDOSOnline resources: Click here to access online
In:
Journal of Political Economy v. 127, n. 3, June 2019, p. 1437-1472Summary: This paper investigates how tax changes for different income groups affect aggregate economic activity. I construct a measure of who received (or paid for) tax changes in the postwar period using tax return data from NBER’s TAXSIM. Variation in the income distribution across US states and federal tax changes generate variation in regional tax shocks that I exploit to test for heterogeneous effects. I find that the positive relationship between tax cuts and employment growth is largely
driven by tax cuts for lower-income groups and that the effect of tax cuts for the top 10 percent on employment growth is small.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 229/2019/3-2 (Browse shelf) | Available | OP 229/2019/3-2 |
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| OP 229/2019/2 Journal of Political Economy | OP 229/2019/3 Journal of Political Economy | OP 229/2019/3-1 State taxation and the reallocation of business activity | OP 229/2019/3-2 Tax cuts for whom? | OP 229/2019/4 Journal of Political Economy | OP 229/2019/4-1 Debt constraints and employment | OP 229/2019/5 Journal of Political Economy |
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Resumen.
Bibliografía.
This paper investigates how tax changes for different income groups affect aggregate economic activity. I construct a measure of who received (or paid for) tax changes in the postwar period using tax return data from NBER’s TAXSIM. Variation in the income distribution across US states and federal tax changes generate variation in regional tax shocks that I exploit to test for heterogeneous effects. I find that the positive relationship between tax cuts and employment growth is largely
driven by tax cuts for lower-income groups and that the effect of tax cuts for the top 10 percent on employment growth is small.
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