Knowing the elasticity of taxable income (ETI) is crucial for understanding the effects of taxation on taxpayer … composition of their compensation than lower-income individuals. This paper considers the taxable income elasticity when … individuals can shift income across tax bases and thereby defer taxation. We decompose the elasticity of taxable income into a …

this elasticity. The paper then examines this effect in the solution to the optimal income taxation problem when such an …

This paper critically surveys the large and growing literature estimating the elasticity of taxable income with respect … assumptions this elasticity can be used as a sufficient statistic for efficiency and optimal tax analysis. We discuss what other … parameters should be estimated when the elasticity is not a sufficient statistic. Second, we discuss conceptually the key issues …

uncertainty, is the overall elasticity of taxable income. We provide new estimates of this elasticity which address identification … income, and on variation in the elasticity of taxable income by income group. We find that the overall elasticity of taxable … income is approximately 0.4; the elasticity of real income, not including tax preferences, is much lower. We also estimate …

(subject to achieving other government objectives). It starts with a review of the theory and practice of deadweight loss …

rate formula as a function of the three corresponding behavioral elasticities. The first elasticity (labor supply) is the … elasticity (avoidance) through tax enforcement and tax neutrality across income forms. The optimal top tax rate increases with … the third elasticity (bargaining) as bargaining efforts are zero-sum in aggregate. We provide evidence using cross …

elasticity measures are not sufficient statistics and must be adjusted upwards in optimal tax formulas. Finally, we study a …