Pechman's Tax Incidence Study: A Response

摘要: I am indebted to Edgar Browning for calling attention some peculiarities of the data underlying estimates in my 1985 study. He is quite right that ratios transfer payments income files 1975 and later years are inconsistent with corresponding 1966 1970 Consumer Population Surveys, particularly lower part distribution. do not believe, however, baby should be thrown out bathwater, as seems suggest. made available him detailed on tax burdens labor income, capital consumption by classes which provided a basis revising calculations years. Instead, he chose draw inferences about progressivity U.S. taxes since changes relative importance various taxes, appropriate this purpose. These would correct only if there were no structure each composition during period studied (for example, individual or distribution dividends classes).' It straightforward improve procedure. Where share total too low years, shares correspondingly high, vice versa. To arrive at more realistic labor, capital, first applied adjusted family decile 1975, 1980, 1985, then proportional adjustments columns rows alternately until they added totals.2 The incidence 1980 based revised weights given table 1 study, shows effective rates major deciles.3 most progressive set assumptions (variant lc) presented Variant Ic assumes corporation property borne general, payroll consumers, those who pay it. believe variant nearly reflects present state theory than any other variants.4