Computing State Average Marginal Income Tax Rate: An Application to Missouri

G. Crader and Joseph Haslag ()
Additional contact information
G. Crader: Department of Economics, University of Missouri-Columbia
Joseph Haslag: Department of Economics, University of Missouri-Columbia, https://economics.missouri.edu/people/haslag

No 1711, Working Papers from Department of Economics, University of Missouri

Abstract: Using filing-level data, we compute the average marginal income tax rate for the State of Missouri. We have data from 2000 through 2015. We start with a simple experiment: consider the effect that a $10 change in federal adjusted gross income would have on each filer’s tax payment. We find that with deductions, exemptions, and credits, the average marginal income tax rate has been remarkably steady over the years, ranging from 3.50 percent to 3.66 percent. This rate is much lower than the top marginal income tax rate, which has been 6 percent for taxable income greater than $9,000 for the entire sample period. In addition, we compute the average marginal income tax rate for different types of income in order to compare directly with the NBER’s reported state rate.

Keywords: average marginal tax rate; individual income; MOSIM (search for similar items in EconPapers)
JEL-codes: C81 E62 H24 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2017-07
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://drive.google.com/file/d/1Yju3eVE5ergG8nIFw ... DkO/view?usp=sharing (application/pdf)

Related works:
Journal Article: Computing state average marginal income tax rates: An application to Missouri (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:umc:wpaper:1711

Access Statistics for this paper

More papers in Working Papers from Department of Economics, University of Missouri Contact information at EDIRC.
Bibliographic data for series maintained by Chao Gu ().