Tax penalties on fluctuating incomes: Estimates from longitudinal data
Authors: Daniel V. Gordon and Jean-François Wen
Overview
Abstract (English)
Progressive personal income taxes can cause individuals with fluctuating incomes to pay more taxes over time than individuals with constant incomes of the same average value. The implicit tax penalty violates principles of equity and may harm efficiency by discouraging risk-taking activities, such as entrepreneurship. This paper uses longitudinal data to estimate the tax penalties in six panels of Canadian data from 1993 to 2010. The effects of various income averaging policies for mitigating tax penalties are then examined.
Abstract (French)
Please note that abstracts only appear in the language of the publication and might not have a translation.
Details
| Type | Journal article |
|---|---|
| Author | Daniel V. Gordon and Jean-François Wen |
| Publication Year | 2018 |
| Title | Tax penalties on fluctuating incomes: Estimates from longitudinal data |
| Volume | 25 |
| Journal Name | International Tax and Public Finance |
| Number | 2 |
| Pages | 430-457 |
| Publication Language | English |
- Daniel V. Gordon
- Daniel V. Gordon and Jean-François Wen
- Tax penalties on fluctuating incomes: Estimates from longitudinal data
- International Tax and Public Finance
- 25
- 2018
- 2
- 430-457