Taxpayer behavior in response to taxation: comment and new experimental evidence
Article Abstract:
The level of work effort rendered by employees tend to decrease when a corresponding increase in marginal tax rates is imposed. Results gathered from the former Ontario Health Insurance Plan premiums revealed that by decreasing the tax rate levied on wage income and off-setting the revenue deficit through non-income related lump sum tax, policy makers may be able to generate work effort improvements. The results nullify the concepts suggested by Swenson, while confirming the Lindbeck theorem .
Publication Name: Journal of Accounting and Public Policy
Subject: Business
ISSN: 0278-4254
Year: 1999
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Article Abstract:
The Lindbeck theorem on taxpayer behavior offers a number of significant contributions to the study, providing a well-defined experimental design for evaluating the correlation between work effort and tax rates. By observing improved experimental administration, increasing the number of sessions involved and utilizing randomization treatments, Lindbeck was able to generate consistent results.
Publication Name: Journal of Accounting and Public Policy
Subject: Business
ISSN: 0278-4254
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
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