Effective Tax Rates and Measures of Business Size

28 Pages Posted: 27 Dec 2012

See all articles by Kevin B. Moore

Kevin B. Moore

Board of Governors of the Federal Reserve System

Date Written: September 3, 2012

Abstract

This paper uses data from the Survey of Consumer Finances (SCF) and the NBER TAXSIM model to estimate marginal and average tax rates for households that own businesses that are pass-thru entities. We examine how marginal and average tax rates vary by the size of business using four different measures of the size: net income, gross receipts, business value, and number of employees. The analysis also uses the long-time series of SCF cross-sections to examine how tax rates for business owners have evolved over the various changes in tax policy of the last two decades.

Keywords: businesses, tax rates, tax policy

JEL Classification: H22, H24, H25

Suggested Citation

Moore, Kevin B., Effective Tax Rates and Measures of Business Size (September 3, 2012). FEDS Working Paper No. 2012-58. Available at SSRN: https://ssrn.com/abstract=2194035 or http://dx.doi.org/10.2139/ssrn.2194035

Kevin B. Moore (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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