Taxes and Entrepreneurial Endurance: Evidence from the Self-Employed
Do taxes drive entrepreneurs out of business? This paper uses panel data on self-employed workers to examine whether differential income and payroll taxes affect their decisions to continue operating or to close their doors and take wage-and-salary jobs. I exploit statutory variations in the tax treatment of wage and self-employment income using data from the Panel Study of Income Dynamics. Taking into account the endogeneity of individual-level tax rates, I find that higher relative marginal tax rates on self-employment income do not necessarily increase the probability of exit.
Year of publication: |
2002
|
---|---|
Authors: | Bruce, Donald |
Published in: |
National Tax Journal. - National Tax Association - NTA. - Vol. 55.2002, N. 1, p. 5-24
|
Publisher: |
National Tax Association - NTA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
On the effectiveness of state tax and expenditure policies to encourage entrepreneurship
Bruce, Donald, (2019)
-
Who are the entrepreneurs? Evidence from taxpayer data
Bruce, Donald, (2002)
-
Rate of growth of second-growth southern pines in full stands
Forbes, R. D., (1930)
- More ...