@article{a9827125963640db951bbfd4b80e6a07,
title = "Tax progressivity and output in the US",
abstract = "Compared to the economic effects of tax rates, those of tax progressivity have benefited much less from the recent Renaissance in fiscal research. In this letter, we use a novel data set on US tax progressivity constructed by Borella et al. (2022) to estimate its output effects since 1970. Our results show that tax progressivity reduces the economy's growth rate temporarily and the level of income per capita permanently. Both effects are sizable, statistically significant, and robust to various specifications and to controlling for changes in the tax rate.",
keywords = "Economic growth, Local projections, Tax progressivity, Tax rates, Time series",
author = "Jalles, {Jo{\~a}o Tovar} and Georgios Karras",
note = "Funding Information: The authors are grateful to an anonymous referee for useful comments and suggestions. They also acknowledge financial support from FCT – Funda{\c c}{\~a}o para a Ci{\^e}ncia e Tecnologia (Portugal), national funding through research grants UIDB/05069/2020 and UIDB/ 04521/2020 . The opinions expressed herein are those of the authors and do not necessarily reflect those of the authors{\textquoteright} employers. Any remaining errors are the authors{\textquoteright} sole responsibility. Publisher Copyright: {\textcopyright} 2024 Elsevier B.V.",
year = "2024",
month = feb,
doi = "10.1016/j.econlet.2024.111545",
language = "English",
volume = "235",
journal = "Economics Letters",
issn = "0165-1765",
publisher = "Elsevier",
}
