No.14

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1 No.14

2

3 () 2

4 natural experiment (Dual Income Tax) 3

5 91 2 4

6 Economic Recovery Tax Act of 1981: ERTA Tax Reform Act of 1986TRA ERTA81 TRA ( ) No.12 (2002) 5

7 (Medicare) (Medicaid) GDP GNP , (1992) (1992) 80 4 (1993) 5 (1986) 6 7 6

8 ERTA Citizens for Tax Justice

9 8 85 ( = ) (G5 ) ERTA81 TRA86 ERTA81 82 ERTA (1986) CEA(1982) ERTA81 11 ERTA81 70 Tempalski (1998) 8

10 (ITC) (ACRS) ERTA (traditional) (radical) (1986)Feldstein(1986)

11 TRA86 Auerbach-Slemrod(1997) (Alternative Minimum Tax: AMT) (tax avoidance) 14 (revenue neutral) (distributional neutrality) TRA (1985) 17 TRA86 Auerbach(2002) 18 CEA(1987) 10

12 ERTA81 5 7,500 ( 5,900 1,600 ) ERTA (indexation) 10 ( second-earner deduction) 19 (Individual Retirement Account: IRA) (1,500 2,000 ) 15 (ACRS) /2 (ITC) (3.33,6.67,10 6,10) ACRS ITC ( 25)

13 TRA86 TRA TRA (standard deduction) (1,080 2,000 ) ( ) IRA ( 50,000 ) (Earned Income Tax Credit: EITC) 21 ( ,000 15,432 ) ACRS MACRS(Modified ACRS) (AMT) Pechman(1987)TRA86 (comprehensive income tax) 21 (2002) 1 ( ) 22 Slemrod(1992) 80 12

14 ERTA81 TRA86 ERTA GDP ACRS Lindsey(1990) Gale 23 (2002) 2 ( ) 13

15 GDP ( ) ( ) W. Gale (Brookings Institution ) (1986) 14

16 ERTA81 Bosworth-Burtless(1992) Lindsey(1987) ERTA81 ERTA81 1/4( 1/6) IRA IRA 27 GNP ( ) ERTA

17 TRA86 (2 ) Bosworth-Burtless(1992) Eissa(1995) TRA TRA Feldstein(1995b) 8589 differences-in-differences 28 (1992) Aaron(1986) 30 Feldstein(1995) 31 TRA Hausman-Poterba(1987), Auerbach-Slemrod(1997) 33 net-of-tax-rate (1- ) 34 (deadweight loss) Feldstein(1999) 2 16

18 Gruber-Saez(2000) 0.4 Gale Gruber-Saez(2000) Auten-Carroll(1999) TRA Feenberg-Poterba(1993) Gale-Potter(2002) W. Gale (Brookings Institution ) Feenberg-Poterba(2000) adjusted gross income: AGI Moffit-Wilhelm(1998) 2 Slemrod(1995) W. Gale (Brookings Institution ) (1993)Hausman-Poterba(1987) 17

19 TRA86 IRA TRA , ( 1 16) Auerbach-Slemrod(1997) GDP ACRS ACRSITC ( ) 39 Auerbach-Slemrod(1997) Bosworth-Burtless(1992) Engen-Gale(1996) TRA86 ( ) 40 (2002) 2 ( ) 41 (1993) 42 Bosworth(1985) 18

20 ACRS ITC ) TRA86 ITC 1, Auerbach-Hassett (1992) ITC ACRS ERTA CEA(1882) 44 (1998) 45 (2000) 46 (2000) 19

21 47 TRA86 Carroll-HoltzEakin-Rider-Rosen(1998) tax price tax price 0.37 TRA86 TRA86 50 ( )46 TRA (C ) (S ) 48 S TRA C 15,219 3,010 S 49 Carroll-Joulfaian(1997) TRA86 C 20 ERTA81 TRA86 47 (1999) S (pass-through) 49 C C 20

22 86 ERTA81 8,835 7, ,212 GDP ,290 Lindsey(1990) ( 8 ) ERTA , , , ,262 GDP GDP TRA86 TRA , , , (1992) 51 (1992) 21

23 92 Slemrod 2, Auerbach-Slemrod(1997) TRA86 AMT Auerbach(2002) EITC TRA ERTA81 ERTA (2000) 53 equal treatment of equals 22

24 23 (ITC) 86 ERTA ERTA86 (2000) 86 ( )

25 (Omnibus Budget Reconciliation Act of 1990: OBRA90) 5 3,500 1, (10) 93 (Omnibus Budget Reconciliation Act of 1993: OBRA93) (34 35) (EITC) 5 2, Steuerle(2001) (1998), 24

26 97 (Tax Relief Act of 1997: TRA97) 17 ( 400 ) (HOPE ) ,700 1,300 2, (Economic Growth and Tax Relief Reconciliation Act of 2001) (2010 ) ( ) , ,099 GDP , , (2002) 4 ( )

27 Feldstein-Feenberg(1995) (deadweight loss) Carroll(1998) Goolsbee(1998) differences-in-differences ERTA81 86 TRA86 ERTA81 TRA86 TRA Goolsbee(1997)Sammartino-Weiner(1997) 26

28 27

29 1990 (Dual Income Tax) 91 ( Tax Reform of the Century ) ( ) 61 ( 78 ) (2001) 28

30 90 GDP OECD (1994) 63 J. Södersten ( ) (1994a) 29

31 SCB ( 9 ) ( ) (2002) income statement 730 B. Sjokvist (Tax Director, National Tax Board) ( ) 30

32 ( ) ( ) EU 90 IT EU ( ) 69 (2001) IT

33 Agell-Englund-Södersten(1996) 73 (2000) 74 (1991) 32

34 (2002) 76 A. Kristoffersson ( Director) Lodin(1990) 78 B. Sjokvist (Tax Director, National Tax Board) ( ) 33

35 VAT (1992) 80 Agell-Englund-Södersten(1996) 81 (1991) 34

36 GDP 6 86 GDP Cnossen(1997) 83 ( )

37 84 85 ( 31) , , ( 30) ( ) ,000 ( ) 58,00090,000 18, A. Kristoffersson ( Director) (2001) 58,000 (2000) 36

38 ( )

39 FIFO(First In, First Out: ) (SURV) A. Kristoffersson ( Director) SURV (1991) 38

40 30 95 ( ) ( )NPM( 95 Cnossen(1996) (1994b) 39

41 ) ( Sørensen(1998) 80 N.C. Nielsen 101 ( ) ( ) 98 ( 16) (2.5) ( ) ( 25) (TELIA ) Sørensen(1998) (2000)

42 Nielsen-Sørensen(1997) 102 D. Domaiji ( ) Sørensen(1998) 41

43 ( ) (m) 104 (excess burden) Sørensen(1998) 42

44 43 r p r t m + = ( )

45 Klevmarken(1997) 20% Aronsson-Palme(1998) Agell-Englund-Södersten(1998) (tax wedge) Agell-Persson(1998) Agell-Berg-Edin(1995) Agell-Englund-Södersten(1998)

46 ( ) Agell-Berg-Edin(1995) / Agell-Berg-Edin(1995)89 92 Agell-Södersten-Englund(1998) 91 ( ) (5,82010,060 ) ( ) 224 Björklund-Palme-Svensson(1995) Agell-Englund-Södersten (1996) 110 Agell-Englund-Södersten(1998) Agell-Englund-Södersten (1996) OECD 29 45

47 % Auerbach-Hassett-Södersten (1995) 1/ Agell-Englund-Södersten(1998) Agell-Englund-Södersten(1996) Agell-Englund-Södersten(1998) SURV M. Palme ( ) ( ) 46

48 Agell-Englund-Södersten(1998) GDP Agell-Englund-Södersten(1998) (Non-Keynesian Effect) 118 ( )

49 EU SURV J. Södersten ( )B. Sjokvist (Tax Director, National Tax Board) ( ) 48

50 ( 27) J. Södersten ( )B. Sjokvist (Tax Director, National Tax Board) ( ) 121 Sørensen(1998)

51 ( ) Lindhe-Södersten-Öberg(2001) J. Södersten ( ) (Simplified Income Tax Return) (2001) 50

52 91 51

53 ERTA81 86 TRA86 ERTA81 TRA86 TRA86 91 TRA86 52

54

55 54

56 (2001) 8 (2000) 6 (1993) 1993 (1998) (1998) No (1992) 8 (2002) (1986) 11 (2001)1990 No (2002) No (1998) 4 (1986) (1994) 5 (2001) 9 (1999) intellectual CabinetNo (1992) 5 (1985) (1985) (1997) (1994) 1 (2001) Auerbach, A. and K. Hasett (1992) Investment, Tax Policy and The Tax Reform Act of 1986 (in J. Slemrod (ed.)(1992) Do taxes matter?: The Impact of the Tax Reform Act of 1986 MIT Press, 1992) Auerbach, A. and J. Slemrod (1997) The Economic Effects of the Tax Reform Act of 1986 Journal of 55

57 Economic Literature vol. XXXV, June 1997 Auerbach, A. (2002) The U.S. Tax Reform Experience (presented at the Workshop on Tax Reform in Japan, Economic Social Research Institute, Cabinet Office in Tokyo, Sep. 12, 2002) Aaron, H. (1986) The Impossible Dream Comes True (in J. Pechman (ed.) Tax Reform and the U.S. Economy The Brookings Institution, 1986) Auten, G. and R. Carroll (1999) The Effect of Income Taxes on Household Income The Review of Economics and Statistics 81(4), Nov Bosworth, B. and G. Burtless (1992) The Effect of Tax Reform on Labor Supply, Investment and Savings Journal of Economic Perspectives, winter 1992 Bosworth, B. (1985) Taxes and the Investment Recovery Brookings Papers on Economic Activity, 1:1985 Carroll, R. (1998) Do Tax Payers Really Respond to Changes in Tax Rates? Evidence from the 1993 Tax Act OTA Working Paper 79, U.S. Treasury Department, Nov Carroll, R., D. Holtz-Eakin, M. Rider and H. Rosen (2000) Income Taxes and Enterpreneuers Use of Labor, NBER Working Paper 6578, May 2000 Carroll, R. and D. Joulfaian (1997) Taxes and Corporate Choice of Organizational Choice OTA Paper 73, Oct CBO (1996) Labor Supply and Taxes CBO Memorandum, Jan CEA (1982) Economic Report of the President (transmitted to the Congress), Feb CEA (1987) Economic Report of the President (transmitted to the Congress), Feb CEA (1989) Economic Report of the President (transmitted to the Congress), Feb Department of Treasury (1984) Tax Reform for Fairness, Simplicity, and Economic Growth ( ) Eissa, N. (1995) Taxation and Labor Supply of Married Women: The Tax Reform Act of 1986 as a Natural Experiment NBER Working Paper 5023, Feb.1995 Engen, E. and W. Gale (1996) Tax-Preferred Assets and Debt, and the Tax Reform Act of 1986: Some Implications for Fundamental Tax Reform National Tax Journal vol.49, No.3, Sep Feenberg, D. and J. Poterba (1993) Income Inequality and the Income of Very High Income Taxpayers: Evidence from Tax Returns NBER Working Paper 4229, June 1993 Feenberg, D. and J. Poterba (2000) The Income Tax Share of Very High Income Households, NBER Working Paper 7525, Feb 2000 Feldstein, M. (1986) Supply Side Economics: Old Truth and New Claims American Economic Review Papers and Proceedings vol.76, No.2, May 1986 Feldstein, M. (1995a) Behavioral Response to Tax Rates: Evidence from TRA86 American Economic 56

58 Review Papers and Proceedings vol.85, No.2, 1995, (revision of NBER Working Paper 5000, Jan. 1995) Feldstein, M. (1995b) The Effect of Marginal Tax Rate on Taxable Income: A Panel Study of the 1986 Tax Reform Act Journal of Political Economy vol.103, No.3, 1995, (revision of NBER Working Paper 4496, Aug 1997) Feldstein, M. (1999) Tax Avoidance and the Deadweight Loss of the Income Tax Review of Economics and Statistics 81(4), 1999, (revision of NBER Working Paper 5055, March 1995) Feldstein, M. and D. Feenberg (1995) The Effect of Increased Tax Rates on Taxable Income and Economic Efficiency: A Preliminary Analysis of the 1993 Tax Rate Increases NBER Working Paper 5370, Nov Gale, W. and S. Potter (2002) An Economic Evaluation of the Economic Growth and Tax Relief Reconciliation Act of 2001 National Tax Journal, March 2002 Goolsbee, A (1997) What Happens When You Tax the Rich? Evidence from Executive Compensation NBER Working Paper 6333, Dec 1997 Goolsbee, A (1998) It s Not about the Money: Why Natural Experiments Don t Work on the Rich NBER Working Paper 6395, Feb 1998 Gruber, J. and E. Saez (2000) The Elasticity of Taxable Income: Evidence and Implications NBER Working Paper 7512, Jan 2000 Hausman, J. and J. Poterba (1987) Household Behavior and the Tax Reform Act of 1986 Economic Perspectives vol.1, No.1, summer 1987 Joint Committee on Taxation (2001) Summary of Provisions Contained in the Conference Agreement for H.R.1836, the Economic Growth and Tax Relief Reconciliation Act of 2001 May 26, 2001 Lindsey, L. (1987) Individual Taxpayer Response to Tax Cuts with Implications for the Revenue Maximizing Tax Rate Journal of Public Economics 33, (revision of NBER Working Paper 2069) Lindsey, L. (1990) The Growth Experiment: How the New Tax Policy is Transforming the U.S. Economy, Basic Books Moffit, R. and M. Wilhelm (1998) Taxation and the Labor Supply Decisions of the Affluent NBER Working Paper 6621, June 1998 Peckman, J. (1987) Tax Reform: Theory and Practice Economic Perspectives vol.1, No.1, summer 1987 Plesko, G. (1995) Gimme Shelter? Closely Held Corporations Since Tax Reform National Tax Journal vol.48, No.3, Sep Sammartino, F. and D. Weiner (1997) Recent Evidence on Taxpayers Response to the Rate Increases in the 1990s National Tax Journal vol.50, No.3, Sep Slemrod, J. (1992) Do Tax Matter? Lessons from 1980 s American Economic Review Papers and 57

59 Proceedings vol.82, No.2, May 1992 Slemrod, J. (1995) High Income Families and Tax Changes of the 1980 s:the Anatomy of Behavioral Response NBER Working Paper 5218, Aug Slemrod, J. (1998) A General Model of the Behavioral Response to Taxation NBER Working Paper 6582, May 1998 Stein, H. (1984) Presidential Economics: The Making of Economic Policy from Roosevelt to Reagan and Beyond Simon & Schuster, 1984, Steuerle, J. (2001) Tax Policy from 1990 to 2001 prepared for the conference American Economic Policy in 1990s June 20-30, 2001, at J. F. Kennedy School, Harvard University Stiglitz, J. (1988) Economics of the Public Setor (2 nd ed.) W.W.Norton & Company, 1988, ( ) Tempalski, J. (1998) Revenue Effects of Major Tax Bills OTA working paper 81, U.S. Treasury Department, Dec (1994a) (1994b) (2000) 2 (1994) (2001) ( ) ( 2 ) (2002) 6 (1999) (2002) 42 2 (2000)Dual Income Tax (2001) (2002) 5 (2002) 6 (1992) (2001) 10 (2002)

60 (2001)21 ()() (2002) (1991) 1 Agell, J., L. Berg, and P. Edin (1995) Tax Reform, Consumption and Asset Structure Working Paper 1995:17, Department of Economics, Uppsala University Agell, J., P. Englund, and J. Södersten (1996) Tax Reform of the Century -The Swedish Experiment National Tax Journal vol.49, No.4, Dec Agell, J., P. Englund and J. Södersten (1998) Incentives an Redistribution in the Welfare State-Swedish Tax Reform, 1998 Agell, J. and M. Persson (1998) Tax arbitrage and labor supply NBER Working Paper 6708 Aronsson, T. and M. Palme (1998) A Decade of Tax and Benefit Reforms in Sweden: Effects on Labour Supply, Welfare and Inequality Economica vol.65 Auerbach, A. (1996) Measuring the impact of tax reform National Tax Journal vol.49, No.4 Auerbach, A., K. Hassett and J. Södersten (1995) Taxation and corporate investment: The impact of the 1991 Swedish tax reform NBER Working Paper 5189 Björklund, A., M. Palme and I. Svensson (1995) Tax Reforms and Income Distribution: An Assessment Using Different Income Concepts Swedish Economic Policy Review Blomquist, S., M. Eklöf and W. Newey (1997) Tax Reform Evaluation Using Nonparametric Methods: Sweden Working Paper 1997:29, Department of Economics, Uppsala University Cnossen, S. (1996) Company Taxes in the European Union: Criteria and Options for Reform Fiscal Studies vol.17 No.4 Cnossen, S. (1997) Dual Income Taxation: The Nordic Experience OCfEB Research Memorandum 9710, OCfEB Research Centre for Economic Policy, Erasmus University Giavazzi, F. and M. Pagano (1995) Non-Keynesian Effects of Fiscal Policy Changes: International Evidence and the Swedish Experience NBER Working Paper 5332 Jones, L., R. Manuelli and P. Rossi (1993) On the Optimal Taxation of Capital Income NBER Working Paper 4525 Klevmarken, N. (1997) Did the Tax Cuts Increase Hours of Work? A Pre-post Analysis of Swedish Panel Data Uppsala University, mimeo. Lindhe, T., J Södersten and A. Öberg (2001) Economic Effects of Taxing Closed Corporations under a Dual Income Tax Working Paper No 2001:16, Department of Economics, Uppsala University Lodin, S, (1990) The Swedish Tax Reform of 1991 an overview Federation of Swedish Industries Mutén, L., (1996) Dual Income Taxation: Swedish Experience (in L Mutén et al (1996) 'Towards a Dual Income Tax?' Foundations for European Fiscal Studies) Nielsen, S. and P. Sørensen (1997) On the Optimality of the Nordic System of Dual Income Taxation 59

61 Journal of Public Economics 63 Södersten, J. (1993) Sweden (in D.W. Jorgenson, R. Landau (ed.)(1993) Tax Reform and the Cost of Capital, An International Comparison The Brookings Institution) Sørensen, P. (1994) From the Global Income Tax to the Dual Income Tax: Recent Tax Reforms in the Nordic Countries International Tax and Public Finance Kluwer Academic Publishers Sørensen, P. (ed.)(1998) Tax Policy in the Nordic Countries Macmillan Press Sørensen, P. (2001) The Nordic Dual Income Tax In or Out? Institute of Economics, University of Copenhagen Strand, H. (1999) Some Issues Related to the Equity-Efficiency Trade-off in the Swedish Tax and Transfer System OECD Economics Department Working Papers No

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