The Labor Supply and Tax Revenue Consequences of Federal Same-sex Marriage Legalization
نویسنده
چکیده
This paper estimates the effects of same-sex marriage legalization on federal income tax revenue using changes in taxation generated from the 2003 Jobs and Growth Tax Relief Reconciliation Act. These estimates rely critically on the responsiveness of labor supply and marital choice to changes in the tax code. In addition, this paper proposes a novel measure of the marriage penalty that incorporates the fact that individuals will respond optimally to changes in marginal tax rates within the household. The estimates suggest that legalization will result in a small gain, around $34 million per year, in federal income tax revenue.
منابع مشابه
Marriage or Cohabitation: The Effects of the Marriage Tax
This paper examines the marriage tax paid by couples in 2000 using the U.S. Census data from that year. The U.S. Census data allows the study to focus on cohabiting and married couples, and ignore individuals, to overcome the inaccuracies that can result when the income of a potential spouse for an individual must be estimated. The marriage tax for couples is calculated and examined. Then, the ...
متن کاملEvidence of Tax-Induced Individual Behavioral Responses
2 " The Clinton revenue estimates are based on the fallacy that taxpayers will not change their behavior in response to a 37% jump in their marginal tax rates... " Martin Feldstein (1993) Estimating the effect of income taxes on individual behaviors such as labor supply, compensation, saving, and taxable income have been focal points of economic research for several decades. Because income taxe...
متن کاملTaxation and the Nigerian Economy: (1994-2012)
The study investigates the impact of taxation on the Nigerian economy for the period 1994 -2012.The dependent variables used in the model includes: Gross Domestic Product (GDP) as a parameter for measuring economic growth, Inflation and unemployment. The objective is this study is to determine how taxation affects these macroeconomic variables. To avoid spurious results, the data set collected ...
متن کاملLegalizing and Regulating Marijuana in Canada: Review of Potential Economic, Social, and Health Impacts
Notwithstanding a century of prohibition, marijuana is the most widely used illicit substance in Canada. Due to the growing public acceptance of recreational marijuana use and ineffectiveness of the existing control system in Canada, the issue surrounding legalizing this illicit drug has received considerable public and political attentions in recent years. Consequently, the newly elected Liber...
متن کاملAppropriate Labor income and Capital gain tax rates functions extraction based on Overlapping Generation Models: Dynamic Stochastic General Equilibrium (DSGE) approach
In this study, using the overlapping generation (OLG (model and the Stochastic Dynamic General Equilibrium (DSGE) approach, the optimal form of labor income tax rate and capital income tax functions is extracted for the economy of Iran using annual time series data during 1357 to 1397. The results of comparing the calibration and simulation of the designed model show that the optimal functions ...
متن کامل