Taxpayer Behavior and the Distribution of the 1982 Tax Cut / Lawrence B. Lindsey.

Format:

Book

Author/Creator:

Lindsey, Lawrence B.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1760.

NBER working paper series no. w1760

Language:

English

Subjects (All):

Taxation--United States.

Taxation.

Income tax--United States.

Income tax.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1985.

Cambridge, Mass. : National Bureau of Economic Research, 1985.

Summary:

The Economic Recovery Tax Act of 1981 mandated the most substantial reduction in personal income tax rates since the tax cuts of 1964. The rate reductions stimulated debates about the responsiveness of taxpayers to tax rates and incentives, the magnitude of the foregone revenue, and the distribution of the tax burden. This paper provides estimates of these three parameters. A baseline income distribution was created which took the macroeconomic environment of 1982 as given. This distribution is contrasted with the actual income reported in 1982 to measure the added reporting of income as a result of the rate cuts. The National Bureau of Economic Research TAXSIM model was used to estimate the effects of taxpayer behavior on tax liabilities as well.

Notes:

Print version record

October 1985.