The Elasticity of Taxable Income in The Presence of Intertemporal Income Shifting

Aspen Gorry, Glenn Hubbard and Aparna Mathur

National Tax Journal, 2021, vol. 74, issue 1, 45 - 73

Abstract: This paper analyzes how traditional estimates of the elasticity of taxable income among top executives are influenced by the possibility of income deferral. We study the intertemporal shifting of executive compensation in response to changes in personal, corporate, and capital gains tax rates over the period 1992–2005. We separate the elasticity of taxable income into real and income-shifting responses. Most of the elasticity is due to an income-shifting (rather than a real) response. Understanding income shifting provides insight into the revenue and welfare implications of tax policy.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1086/712866 (application/pdf)
http://dx.doi.org/10.1086/712866 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: The Elasticity of Taxable Income in the Presence of Intertemporal Income Shifting (2018)
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:ucp:nattax:doi:10.1086/712866

Access Statistics for this article

More articles in National Tax Journal from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().