Sunday, April 27, 2008
Martin Feldstein (Harvard University, Deparment of Economics; NBER) has published Effects of Taxes on Economic Behavior, 61 Nat'l Tax J. 131 (2008). Here is the abstract:
This paper discusses how the effects of taxes on economic behavior are important for revenue estimation, for calculating efficiency effects, and for understanding short–term macroeconomic consequences. The primary focus is on taxes on labor income but some attention is given to taxes on the income from saving. Specific calculations illustrate the importance of behavioral responses for accurate calculation of the revenue effects and deadweight losses of tax changes.