In 1983, federal and state governments began taxing the social security benefits of high-income elderly. We develop a conceptual model and use 1981–1986 Current Population Survey data to estimate the policy’s labor supply effects. Our estimates suggest that the approximate 20...

This research investigates the evolution of federal and state income tax preferences for the elderly during the past twenty-five years. Documenting how various types of income tax preferences have changed reveals that state tax policies are not simply mimicking federal tax law. It also shows a...

This research investigates whether workers perceive current deficits as implied future taxes (la Ricardian equivalence) and therefore consider current deficits when formulating their expectations about future net wages. A life cycle model of labor supply that permits workers to be aware of the...

A careful analysis of the effects of fiscal policy must not only consider both sides of the fiscal policy equation—taxes and the resulting government spending—but must also specify the extent to which taxpayers use this equation in making decisions. This research develops a...