The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review

@article{Saez2009TheEO,
  title={The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review},
  author={E. Saez and Joel B. Slemrod and S. Giertz},
  journal={NBER Working Paper Series},
  year={2009}
}
  • E. Saez, Joel B. Slemrod, S. Giertz
  • Published 2009
  • Economics
  • NBER Working Paper Series
  • This paper critically surveys the large and growing literature estimating the elasticity of taxable income with respect to marginal tax rates (ETI) using tax return data. First, we provide a theoretical framework showing under what assumptions this elasticity can be used as a sufficient statistic for efficiency and optimal tax analysis. We discuss what other parameters should be estimated when the elasticity is not a sufficient statistic. Second, we discuss conceptually the key issues that… CONTINUE READING
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