Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5058905 | Economics Letters | 2014 | 5 Pages |
Abstract
â¢We examine individuals' spending responses to the 2013 US payroll tax increase and tax refunds received in 2013.â¢Taxpayers respond asymmetrically to tax increases versus tax refunds.â¢The asymmetry is persistent across race, gender, and measures of financial constraints.
We examine low-to-middle income individuals' responses to the 2013 payroll tax increase and their 2012 tax refund and find that consumption declines  90 cents per dollar lost to the tax increase, and rises  60 cents per additional tax refund dollar.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Anat Bracha, Daniel Cooper,