Behavioral Responses to State Income Taxation of High Earners: Evidence from California

• 成果类型: Article
• 署名作者: Rauh, Joshua; Shyu, Ryan
• 署名单位: Stanford University; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20200500
• 发表日期: 2024
• 页码: -
• 关键词: marginal tax rates; taxable income; millionaire migration; deadweight loss; elasticity; location; panel

摘要

Using administrative data, we analyze the response to Proposition 30, a 2012 measure that increased California marginal tax rates by up to 3 percentage points for high -income households. Relative to baseline departure rates, an additional 0.8 percent of the residential tax base that landed in the top bracket left California in 2013. Using matched out-of-state taxpayers as controls reveals an income elasticity with respect to the marginal net -of -tax rate of 2.5-3.2 for high earners who stayed. These responses eroded 45.2 percent of state windfall tax revenues within the first year and 60.9 percent within 2 years, driven largely by the intensive margin. (JEL D91, H24, H31, H71, H73, J61, R23)