Asymmetric responses to income changes: The payroll tax increase versus tax refund in 2013

Anat Bracha and Daniel Cooper

Economics Letters, 2014, vol. 124, issue 3, 534-538

Abstract: We examine low-to-middle income individuals’ responses to the 2013 payroll tax increase and their 2012 tax refund and find that consumption declines 90 cents per dollar lost to the tax increase, and rises 60 cents per additional tax refund dollar.

Keywords: Payroll tax changes; Consumption; Tax refunds; Saving (search for similar items in EconPapers)
JEL-codes: E21 H24 H31 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176514002857
Full text for ScienceDirect subscribers only

Related works:
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:eee:ecolet:v:124:y:2014:i:3:p:534-538

DOI: 10.1016/j.econlet.2014.07.028

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().