Distributional Effects on a Lifetime Basis

44 Pages Posted: 18 Apr 2011 Last revised: 19 Oct 2015

See all articles by Don Fullerton

Don Fullerton

University of Illinois at Urbana-Champaign - Department of Finance; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

Diane Lim Rogers

Joint Economic Committee, Democratic Staff

Date Written: September 1994

Abstract

All government agencies charged with the responsibility of estimating distributional effects use annual income to classify households and one year's tax to characterize tax burdens. In this paper, we describe an alternative procedure to estimate lifetime tax burdens as proportions of lifetime income. To illustrate this model, we calculate lifetime effects of a uniform consumption tax and a wage tax. This kind of analysis can supplement existing annual analyses, since policymakers might want to insure both that current taxes reflect current ability to pay and that lifetime taxes reflect lifetime ability to pay.

Suggested Citation

Fullerton, Don and Lim Rogers, Diane, Distributional Effects on a Lifetime Basis (September 1994). NBER Working Paper No. w4862. Available at SSRN: https://ssrn.com/abstract=1811477

Don Fullerton (Contact Author)

University of Illinois at Urbana-Champaign - Department of Finance ( email )

1206 South Sixth Street
Champaign, IL 61820
United States
(217) 244-3621 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Diane Lim Rogers

Joint Economic Committee, Democratic Staff ( email )

Ford House Office Building
2nd & D Streets, SW
Washington, DC 20515
United States
202 224 5171 (Phone)

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