We use a 1985-2005 panel of state data to investigate the relative tax base elasticities of two major US state taxes—corporate income taxes and sales taxes—with respect to changes in their tax rates. We focus on these two taxes because they are essentially flat-rate taxes at the state level, making it relatively straightforward to construct estimates of their bases using aggregate collections a...

The paper discusses the methodology and preliminary results of an investigation of the redistributive effects of social security contributions (SSC), personal income tax (PIT), public pensions as well as means-tested and non-means-tested cash benefits in Croatia. The transition from a preto a post-tax-and-benefit income is analyzed in order to reveal which instruments contribute most to the red...

We develop a theory of cross-border income shifting in response to personal taxation, and examine its implications for the revenue potential and excess burden of personal taxes at the subnational level. We estimate the elasticity of tax avoidance and of cross-border tax base shifting using data on top income shares for Canadian provinces, finding that interprovincial shifting accounts for about...

This paper analyzes the effect of personal income taxation on the sensitivity of executive compensation to company performance and the use of stock option and restricted stock grants underlying this sensitivity. The theoretical model predicts that, if a single tax rate applies to the entire compensation package, an increase in the tax rate weakly diminishes the equilibrium level of managerial e...

federal and state tax policies in the united states offer substantial incentives to donate to charity. The federal income tax and most state income taxes give taxpayers the choice between an itemized deduction for expenditures such as charitable donations, mortgage interest , and state and local taxes, or a standard deduction, which at the federal level amounts to $12,200 for married taxpayers ...

The issue addressed in this paper is the optimal taxation of incomes earned tn the home economy, and of incomes earned abroad, when people can migrate. As a preliminary, the optimal taxation of home incomes when there is migration and no taxation of foreign incomes, is discussed. Then in a more general setting, we deal with optimal taxation of different kinds of labour when another kind of labo...