Over the past two decades, the volatility of the United States federal income tax revenue has increased. Looking deeper into the income composition of taxable sources, we find that tax revenue has increased its dependence on volatile — broadly defined--capital income, due in part to an...

What is the impact of taxation on growth? Is it supported by specific taxes and harmed by others? We use an error correction model to study the relationship between the tax composition and GDP growth in the EU27 Member States over the period 1995-2019. Under the constraint of revenue-neutrality,...

We estimate effective and optimal net income tax schedules and compare them to the estimated statutory rates for the case of Lithuania for the period 2014-2015. Values of effective net tax rates are estimated from the survey of EU Statistics on Income and Living Conditions; the statutory net tax...

New Hampshire bills itself as a highly attractive state to individuals and businesses seeking to relocate. This claim is made in part because of its tax structure and its lack of individual income or sales taxes. Taxes have been, and continue to be, a central item of debate each election cycle...

Substantial variations in the cost of living among regions in the United States are a major impediment to achieving a fair and equitable income tax system. Geographic cost of living differences arise because of disparities in the consumption power of income in different regions. Although the...

We investigate how income tax reductions affect work hours. Our empirical strategy relies on the fact that, in states where taxpayers can deduct federal tax payments from state taxable income, federal tax changes are dampened. We study 2003 tax reforms (JGTRRA) that dramatically reduced federal...

We consider optimal taxation in a model with wealth-poor and wealth-rich households, where wealth derives from business capital and home ownership, and investigate the consequences of a rising wealth inequality at steady state on these tax rates. The optimal tax structure includes some taxation...

This paper studies the optimal top marginal income tax rate in a quantitative framework with entrepreneurial choice, financing constraints, and realistic earnings and wealth distributions. I find that the revenue-maximizing top tax rate is approximately 41 percent — close to the recent levels...