Discussion Papers no. 545
More realistic estimates of revenue changes from tax cuts
Procedures of revenue estimation of changes in the personal income tax are discussed. Using revenue estimates of the 2006 tax cuts in the personal income tax in Norway as an example, we show that estimates of costs of cuts differ substantially when different effects are brought into consideration. Estimates of revenue effects which take labor supply responses and effects through indirect taxation and corporate taxes into account are presented and contrasted with estimates obtained by current procedures. Our estimates indicate that a substantial part of the initial outlay is returned; approximately 56 percent comes back as increased tax revenues from other tax bases and increased personal income tax following from labor supply adjustments.
Om publikasjonen
- Tittel
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More realistic estimates of revenue changes from tax cuts
- Ansvarlige
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Thor Olav Thoresen, Zhiyang Jia, Jørgen Aasness
- Serie og -nummer
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Discussion Papers no. 545
- Utgiver
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Statistics Norway
- Emne
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Discussion Papers
- Antall sider
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22
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
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