Tax arbitrage and labor supply

• 成果类型: Article; Proceedings Paper
• 署名作者: Agell, J; Persson, M
• 署名单位: Uppsala University; Stockholm University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(99)00109-7
• 发表日期: 2000
• 页码: 3-24
• 关键词: labor supply; Tax avoidance; tax progression

摘要

We examine how tax avoidance in the form of trade in well-functioning asset markets affects the basic labor supply model. We show that models that integrate tax arbitrage and labor supply decisions may shed light on a number of positive and normative questions concerning modern systems of income taxation. Such models also appear to have striking implications for empirical research. Studies that ignore tax avoidance may easily come up with biased estimates of the tax responsiveness of the labor supply of high-wage individuals. Also, because of tax avoidance, international comparisons of income inequality will exaggerate the redistributive achievements of high-tax countries like Sweden. (C) 2000 Elsevier Science S.A. All rights reserved.