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The impact of income tax changes on tax revenue.

This article shows that tax revenue responses to changes in tax rates crucially depend on how the changes affect the marginal tax rate relative to the average tax rate. Using a wide range of empirical frameworks and datasets, we find that tax multipliers are consistently large and tax revenues fall...

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Published in:Oxford Economic Papers Vol. 78; no. 3; pp. 712 - 740
Main Authors: McManus, Richard, Ozkan, F Gulcin, Trzeciakiewicz, Dawid
Format: Article
Published: Oxford University Press / USA Jul2026
Subjects:
Income tax
Keynesian economics
Empirical research
Tax rates
General equilibrium theory (Economics)
Internal revenue
Online Access:View this record in EBSCOhost