In light of this new evidence, in the discussion and tables that follow, I assume a taxable income elasticity
Is the taxable income elasticity
sufficient to calculate deadweight loss?
Instead, my goal will be to use those same methods but apply them to different time periods than the familiar tax changes of the 1980s and 1990s, to see how robust the case is for a large taxable income elasticity
The original papers in the taxable income elasticity
literature argue that income can be responsive to taxes even if saving and labor supply are relatively unresponsive (Lindsey 1987; Feldstein 1995).
The authors raise the possibility that the base-broadening provisions of TRA86 actually reduced the true taxable income elasticity
There is a plethora of literature studying the taxable income elasticity
However, taxpayers were apparently much more responsive to tax rate changes in 1979 than 1991, because Long and Gwartney concluded that in 1979, the taxable income elasticity
with respect to the marginal tax rate was probably in the -0.