Toro
Diamond Member
Well, most do. And different tax cuts have different affects. Let's take a look.
Tax cuts on corporate income increase the corporate tax share as a percentage of GDP
http://www.cato.org/pubs/tbb/tbb_1107_49.pdf
Decreasing payroll taxes and instituting a flat corporate income tax would triple entrepreneurial activity.
Taxes and Entrepreneurial Activity
Taxes on wireless services destroys more economic value than the tax revenues it brings in.
Taxes on Wireless Services Burden the Economy
Higher tax rates on labor income and consumption expenditures lead to less work time in the legal market sector, more time working in the household sector, a larger underground economy, and smaller shares of national output and employment in industries that rely heavily on low-wage, low-skill labor inputs.
Effects of Taxes on Labor Income
High Income Taxes Inhibit the Growth of Small Firms
High Income Taxes Inhibit the Growth of Small Firms
Taxes Discourage Mutual Fund Investors
Taxes Discourage Mutual Fund Investors
Differences in taxes across countries are a very important piece of the explanation for the vastly different levels of hours of market work hours of work in the United States were roughly the same in 1956 and 2004, while hours of work in Germany decreased by about 40 percent over this same period.
http://www.nber.org/digest/may07/w12786.html
Internet sales are highly sensitive to local taxation. People who live in high sales tax locations are significantly more likely to make purchases over the Internet.
Consequences of Employment Protection
Estate taxes do have a negative impact on the accumulation of wealth. An estate tax rate of 50 percent (just below the current top rate) is associated with a reduction in the reported net worth of the richest half percent of the population of 10.5 percent.
http://www.nber.org/digest/mar01/w7960.html
U.S. equity Foreign Portfolio Investment in the average treaty country rose by over 90 percent relative to U.S. equity holdings in the average non-treaty country, in response to the large relative decrease in the dividend tax rate for corporations in treaty countries.
http://www.nber.org/digest/jul08/w13281.html
Tax changes have very large effects: an exogenous tax increase of 1 percent of GDP lowers real GDP by roughly 2 to 3 percent.
http://www.nber.org/digest/mar08/w13264.html
Europe's failure to develop the kind of thriving service sector that has transformed the U.S. economy, a deficiency for which high taxes are largely to blame, is the main culprit behind the fact that over the last fifty years, hours worked in Europe have declined by almost 45 percent compared to hours worked in the United States. That's the conclusion of NBER Research Associate Richard Rogerson in Structural Transformation and the Deterioration of European Labor Markets (NBER Working Paper No. 12889). He finds that over the last half a century, European economies have suffered from a form of arrested development.
Europe's Lagging Service Sector
Our data reveal a consistent and large adverse effect of corporate taxation on both investment and entrepreneurship. A 10 percentage point increase in the effective corporate tax rate reduces the investment to GDP ratio by about 2 percentage points, and the official entry rate by 1.3 percentage points ...
Recognizing that we have data on many developing countries, we also consider the effect of corporate taxes on the unofficial economy. We find that higher corporate taxes are associated with a larger unofficial economy, consistent with our findings on entry by official firms. This suggests that an important margin on which corporate taxation might influence macroeconomic outcomes is by keeping firms unofficial.
http://www.nber.org/confer/2007/pef07/shleifer.pdf
We examine the extent to which taxes on corporate income are shifted onto the workforce in the form of lower wages. We find that a significant part of the effective incidence of the tax falls on wages. Our central estimate is that 54% of any additional tax is passed on in lower wages, even in the short run; other estimates are larger than this. In the longer run, a $1 rise in the tax liability results in a fall in total employee compensation in excess of $1.
http://users.ox.ac.uk/~mast1732/RePEc/pdf/WP0707.pdf
And so on...
Tax cuts on corporate income increase the corporate tax share as a percentage of GDP
http://www.cato.org/pubs/tbb/tbb_1107_49.pdf
Decreasing payroll taxes and instituting a flat corporate income tax would triple entrepreneurial activity.
Taxes and Entrepreneurial Activity
Taxes on wireless services destroys more economic value than the tax revenues it brings in.
Taxes on Wireless Services Burden the Economy
Higher tax rates on labor income and consumption expenditures lead to less work time in the legal market sector, more time working in the household sector, a larger underground economy, and smaller shares of national output and employment in industries that rely heavily on low-wage, low-skill labor inputs.
Effects of Taxes on Labor Income
High Income Taxes Inhibit the Growth of Small Firms
High Income Taxes Inhibit the Growth of Small Firms
Taxes Discourage Mutual Fund Investors
Taxes Discourage Mutual Fund Investors
Differences in taxes across countries are a very important piece of the explanation for the vastly different levels of hours of market work hours of work in the United States were roughly the same in 1956 and 2004, while hours of work in Germany decreased by about 40 percent over this same period.
http://www.nber.org/digest/may07/w12786.html
Internet sales are highly sensitive to local taxation. People who live in high sales tax locations are significantly more likely to make purchases over the Internet.
Consequences of Employment Protection
Estate taxes do have a negative impact on the accumulation of wealth. An estate tax rate of 50 percent (just below the current top rate) is associated with a reduction in the reported net worth of the richest half percent of the population of 10.5 percent.
http://www.nber.org/digest/mar01/w7960.html
U.S. equity Foreign Portfolio Investment in the average treaty country rose by over 90 percent relative to U.S. equity holdings in the average non-treaty country, in response to the large relative decrease in the dividend tax rate for corporations in treaty countries.
http://www.nber.org/digest/jul08/w13281.html
Tax changes have very large effects: an exogenous tax increase of 1 percent of GDP lowers real GDP by roughly 2 to 3 percent.
http://www.nber.org/digest/mar08/w13264.html
Europe's failure to develop the kind of thriving service sector that has transformed the U.S. economy, a deficiency for which high taxes are largely to blame, is the main culprit behind the fact that over the last fifty years, hours worked in Europe have declined by almost 45 percent compared to hours worked in the United States. That's the conclusion of NBER Research Associate Richard Rogerson in Structural Transformation and the Deterioration of European Labor Markets (NBER Working Paper No. 12889). He finds that over the last half a century, European economies have suffered from a form of arrested development.
Europe's Lagging Service Sector
Our data reveal a consistent and large adverse effect of corporate taxation on both investment and entrepreneurship. A 10 percentage point increase in the effective corporate tax rate reduces the investment to GDP ratio by about 2 percentage points, and the official entry rate by 1.3 percentage points ...
Recognizing that we have data on many developing countries, we also consider the effect of corporate taxes on the unofficial economy. We find that higher corporate taxes are associated with a larger unofficial economy, consistent with our findings on entry by official firms. This suggests that an important margin on which corporate taxation might influence macroeconomic outcomes is by keeping firms unofficial.
http://www.nber.org/confer/2007/pef07/shleifer.pdf
We examine the extent to which taxes on corporate income are shifted onto the workforce in the form of lower wages. We find that a significant part of the effective incidence of the tax falls on wages. Our central estimate is that 54% of any additional tax is passed on in lower wages, even in the short run; other estimates are larger than this. In the longer run, a $1 rise in the tax liability results in a fall in total employee compensation in excess of $1.
http://users.ox.ac.uk/~mast1732/RePEc/pdf/WP0707.pdf
And so on...