Estimating dynamic income responses to tax reforms: Swedish evidence

摘要: We study income responses to tax changes by using a large panel of Swedish payers over the period 1991–2002. Changes in statutory rates as well discretionary bracket thresholds provide exogenous variations that can be used identify responses. estimate dynamic models which allow us distinguish between short-run and long-run effects straightforward fashion. For men, estimates elasticity with respect net-of-tax rate hover range 0.10 0.30. The for women are imprecise statistically insignificant. simulate fiscal consequences reform reduces top marginal five percentage points. Such may have negligible on revenues even relatively small elasticities when interactions taxes other taken into account.