Income Tax Shocks, Political Cycles, and Asset Prices

2018 ◽  
Author(s):  
Ruchith Dissanayake
Keyword(s):  
Income Tax ◽  
Asset Prices ◽  
Political Cycles ◽  
Tax Shocks

scholarly journals The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States

2013 ◽  
Vol 103 (4) ◽  
pp. 1212-1247 ◽  
Author(s):  
Karel Mertens ◽  
Morten O Ravn
Keyword(s):  
United States ◽  
Income Tax ◽  
The United States ◽  
Income Taxes ◽  
Dynamic Effects ◽  
Different Types ◽  
Short Run ◽  
Tax Shocks ◽  
Tax Changes ◽  
Narrative Account

This paper estimates the dynamic effects of changes in taxes in the United States. We distinguish between changes in personal and corporate income taxes and develop a new narrative account of federal tax liability changes in these two tax components. We develop an estimator which uses narratively identified tax changes as proxies for structural tax shocks and apply it to quarterly post-WWII data. We find that short run output effects of tax shocks are large and that it is important to distinguish between different types of taxes when considering their impact on the labor market and on expenditure components. (JEL E23, E62, H24, H25, H31, H32)

scholarly journals The Private Income Tax Shock Premium

2019 ◽  
Author(s):  
Zornitsa Todorova
Keyword(s):  
Asset Pricing ◽  
Income Tax ◽  
Consumer Demand ◽  
Factor Model ◽  
Wealth Effect ◽  
Investment Strategy ◽  
Policy Changes ◽  
Cross Sectional ◽  
Tax Shocks ◽  
Elastic Demands

This paper investigates the asset pricing implications of tax policy changes. News about tax cuts decreases future tax revenues and increases future consumer demand and output. Using cross-sectional variation in industry exposure to structurally identified tax news, I develop a factor mimicking private income tax shocks. I construct an investment strategy, which generates annualized risk-adjusted returns of 5.16 % over the Fama-French 3-factor model. I rationalize the finding by arguing that firms with more elastic demands bear higher consumption risk, which works through a wealth effect.

scholarly journals The Macroeconomic Effects of Income and Consumption Tax Changes

2021 ◽  
Vol 13 (2) ◽  
pp. 439-466
Author(s):  
Anh D.M. Nguyen ◽  
Luisanna Onnis ◽  
Raffaele Rossi
Keyword(s):  
Income Tax ◽  
Transmission Mechanism ◽  
Consumption Tax ◽  
Indirect Taxation ◽  
The United Kingdom ◽  
Tax Shocks ◽  
Tax Changes ◽  
Consumption Taxes ◽  
Narrative Account ◽  
Tax Cuts

This paper estimates the effects of exogenous changes in income and consumption taxes. The tax shocks are proxied with a narrative account of tax liability changes in the United Kingdom. Income tax cuts have large effects on GDP, private consumption, and investment. The effects of consumption tax cuts are modest and not statistically significant on GDP and its components. Shifting the burden of taxation from income to consumption is expansionary. Consistent with conventional public finance theories, these results indicate that it is crucial to distinguish between direct and indirect taxation when studying the transmission mechanism of fiscal policy. (JEL E21, E22, E23, H24, H25)

Regime of Fiscal Incorporation (RIF): A Tool That Gives Competitiveness to Start-Ups in Mexico

2018 ◽  
Vol 9 (12) ◽  
pp. 1042-1046
Author(s):  
Tadeo Armando Barrón López ◽  
Keyword(s):  
Latin America ◽  
Income Tax ◽  
Appropriate Use ◽  
Old Regime ◽  
Advantages And Disadvantages ◽  
Start Ups

The following text will show the different tax forms for a newly created company to become competitive, analyze the subsidies they have in a federal tax (Income Tax), compare the tax incorporation regime (RIF) with The old regime of small taxpayers (REPECO), analyzes the advantages and disadvantages of the appropriate use of RIF for start-ups, and finally, the tax incorporation regime is compared with similar ones in Latin America, reflecting on tax contributions Which each government has to raise so that its governments are efficient and effective within a country.

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