Download This PaperIs the Maximum Tax on Earned Income Effective?
32 Pages Posted: 8 Jun 2004 Last revised: 5 Sep 2022
Date Written: 1981
Abstract
The Tax Reform Act of 1969 included a provision intended to set at 50 percent the tax rate on all personal service income above the 50 percent bracket amount. The current law fails to meet this objective for the vast majority of these taxpayers. This paper explains why the current law is ineffective, simulates our current experience with the law using the National Bureau of Economic Research TAXSIM model, and considers options to the present law.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
The Effects of Taxation on the Selling of Corporate Stock and the Realization of Capital Gains
By Martin S. Feldstein, Joel B. Slemrod, ...
-
Household Behavior and the Tax Reform Act of 1986
By Jerry A. Hausman and James M. Poterba
-
On the Possibility of an Inverse Relationship between Tax Rates and Government Revenues
-
The Taxation of Exhaustible Resources
By Partha Dasgupta, Geoffrey M. Heal, ...
-
On the Almost Neutrality of Inflation: Notes on Taxation and the Welfare Costs of Inflation