Income taxes and entrepreneurs' use of labor

• 成果类型: Article
• 署名作者: Carroll, R; Holtz-Eakin, D; Rider, M; Rosen, HS
• 署名单位: United States Department of the Treasury; Syracuse University; University System of Georgia; Georgia State University; Princeton University
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/209961
• 发表日期: 2000
• 页码: 324-351
• 关键词: liquidity constraints

摘要

We investigate the effect of entrepreneurs' personal taxes on their use of labor, analyze the tax returns of sole proprietors before and after the Tart Reform Act of 1986, and determine how the substantial reductions in marginal tax rates affected their hiring decisions and wage bills. Individual income taxes exert a statistically and quantitatively significant influence on the probability of hiring workers. Raising the entrepreneur's tax price by 10% raises the mean probability of hiring by about 12%. Further, taxes influence total wage payments to workers. The tax-price elasticity of the median wage bill is about .37.