Is Self-Employment Income More Responsive to Income Tax Rate?
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The paper analyzes the administrative Schedule C self-employment taxable income dataand estimates compensated and uncompensated elasticity of self-employment taxable incomeof the United States. The paper finds that compensated elasticity of self-employment taxableincome ranges from 0.928 to 1.598, suggesting that the calculated average deadweight loss ofincome tax per $1,000 self-employment income ranges from $9 to $15, and from 7% to 12%of self-employment income tax revenue. The uncompensated elasticity of self-employmenttaxable income ranges from 0.953 to 2.810. This responsiveness of self-employment incomeand average deadweight loss reflect short-term responses of static taxable income rather thanlong-term responses. However, the empirical analysis in this paper suggests that the selfemploymenttaxable income is more responsive to the changes in tax rates than the taxableincome of wage workers.
Abstract
The paper analyzes the administrative Schedule C self-employment taxable income dataand estimates compensated and uncompensated elasticity of self-employment taxable incomeof the United States. The paper finds that compensated elasticity of self-employment taxableincome ranges from 0.928 to 1.598, suggesting that the calculated average deadweight loss ofincome tax per $1,000 self-employment income ranges from $9 to $15, and from 7% to 12%of self-employment income tax revenue. The uncompensated elasticity of self-employmenttaxable income ranges from 0.953 to 2.810. This responsiveness of self-employment incomeand average deadweight loss reflect short-term responses of static taxable income rather thanlong-term responses. However, the empirical analysis in this paper suggests that the selfemploymenttaxable income is more responsive to the changes in tax rates than the taxableincome of wage workers.
참고문헌 (24)
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