Grupos de Investigación |
Seminario IECON "How do Top Earners Respond to Taxation? Evidence from a Tax Reform in Uruguay"Presenta Marcelo Bérgolo (IECON-FCEA) Abstract “In this paper, we analyze how top income earners respond to personal income tax, using administrative tax records jointly with Social Security data from Uruguay. Our identification strategy exploits a reform to Uruguay’s progressive labor income tax schedule that generated differential changes in the top tax rates among otherwise similar taxpayers at the top of the income distribution. Based on this exogenous source of variation and a diff-in-diff empirical strategy, we estimate elasticities on three margins of behavioral responses –intensive, extensive, income shifting– to (one minus) the top labor income tax rates change. Our intensive margin results suggest relatively low elasticities for the whole sample of top income earners of around 0.26, although higher elasticities for the self-employed sample (0.6). We do not find evidence that real-labor supply responses drive income reporting adjustments. The extensive margin elasticities of labor income for the whole sample of top income are slightly above 3. However, we present suggestive evidence that most of the extensive margin response is caused by income-shifting movements from labor to corporate income tax base. We estimate the efficiency cost caused by the top tax rate reform amounts at most 25% of the projected tax revenue". Martes 1/12/2020 12 hs. Zoom ID: 928 2695 4313 Contraseña: 5!CKSCwJ?*
|