Replication data for: Taxpayer Confusion: Evidence from the Child Tax Credit
Principal Investigator(s): View help for Principal Investigator(s) Naomi E. Feldman; Peter Katuščák; Laura Kawano
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
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| Final-Programs | 12/06/2019 05:00:PM | ||
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text/plain | 14.6 KB | 12/06/2019 12:00:PM |
Project Citation:
Feldman, Naomi E., Katušcák, Peter, and Kawano, Laura. Replication data for: Taxpayer Confusion: Evidence from the Child Tax Credit. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-06. https://doi.org/10.3886/E116150V1
Project Description
Summary:
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We develop an empirical test for whether households understand
or misperceive their marginal tax rate. Our identifying variation
comes from the loss of the Child Tax Credit when a child turns 17.
Using this age discontinuity, we find that despite this tax liability
increase being lump-sum and predictable, households reduce their
reported wage income upon discovering they have lost the credit.
This finding suggests that households misinterpret at least part of
this tax liability change as an increase in their marginal tax rate.
This evidence supports the hypothesis that tax complexity can cause
confusion and leads to unintended behavioral responses. (JEL D12,
D14, H24, H31)
Scope of Project
JEL Classification:
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D12 Consumer Economics: Empirical Analysis
D14 Household Saving; Personal Finance
H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
H31 Fiscal Policies and Behavior of Economic Agents: Household
D12 Consumer Economics: Empirical Analysis
D14 Household Saving; Personal Finance
H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
H31 Fiscal Policies and Behavior of Economic Agents: Household
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