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...
| Publicado en: | Oxford Economic Papers Vol. 78; no. 3; pp. 712 - 740 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Oxford University Press / USA
Jul2026
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=196419356&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 196419356 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00307653 OXE jtl: Oxford Economic Papers issn: 00307653 maglogo: N pubinfo: dt: Jul2026 vid: 78 iid: 3 pid: 622 pub: Oxford University Press / USA artinfo: ui: 196419356 10.1093/oep/gpag014 ppf: 712 ppct: 28 formats: tig: atl: The impact of income tax changes on tax revenue. aug: au: McManus, Richard Ozkan, F Gulcin Trzeciakiewicz, Dawid affil: School of Business, Law and Policing, Canterbury Christ Church University, North Holmes Road, Canterbury, Kent, CT1 1QU, United Kingdom King's Business School, King's College London, Bush House, Strand campus, 30 Aldwych, London, WC2B 4BG, United Kingdom Loughborough Business School, Loughborough University, Sir Richard Morris Building, Epinal Way, Loughborough, Leicestershire, LE11 3TU, United Kingdom su: Income tax Keynesian economics Empirical research Tax rates General equilibrium theory (Economics) Internal revenue sug: subj: Income tax Keynesian economics Empirical research Tax rates General equilibrium theory (Economics) Internal revenue keyword: copyrightHolder:Oxford University Press copyrightYear:2026 E20 E62 H20 H40 inLanguage:en J22 Laffer curve marginal tax rates publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/oep/gpag014 tax multiplier tax revenues tax shocks copyrightHolder:Oxford University Press copyrightYear:2026 E20 E62 H20 H40 inLanguage:en J22 Laffer curve marginal tax rates publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/oep/gpag014 tax multiplier tax revenues tax shocks ab: 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 in response to tax rises, particularly when marginal taxes are raised. We validate our empirical findings within canonical real and new-Keynesian general equilibrium models by introducing the wedge between the average and marginal tax rates. Doing so reconciles a significant discrepancy between the theoretical and empirical size of tax multipliers. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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