State Taxation of Nonresident Income and the Location of Work

• 成果类型: Article
• 署名作者: Agrawal, David R.; Tester, Kenneth
• 署名单位: University of Kentucky; University of Kentucky; Leibniz Association; Ifo Institut; University of Exeter
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20210567
• 发表日期: 2024
• 页码: 447-481
• 关键词: foreigners tax scheme; top earners evidence; millionaire migration; LABOR; mobility

摘要

Prior studies show that taxes matter for the residential locations of high-income earners. But states raise a significant share of revenue from nonresidents. Using variation in state tax rates, we provide causal evidence on the effect of the net -of -tax rate on the location of labor supply for professional golfers. State taxes induce high-income earners to shift employment to low-tax states without a residence change. The elasticity of working in a state is 0.34 and, consistent with the superstar phenomenon, increases with earnings. Our results suggest a novel margin of mobility responses for top earners: the spatial relocation of labor supply by nonresidents.