Abstract
AbstractUsing the administrative tax return database, we document the Canadian income and tax statistics in 2000 and in 2016 and compare them with those of the US. Also, we estimate parametric tax specifications used in applied macroeconomic and public finance studies. Although these specifications are, in general, good fits for average tax rates, their estimates yield large residuals for high‐income earners. We introduce a new parametric tax specification, which fits the data well and captures the rates of high‐income earners better than existing tax functions. The new specification can provide better quantitative analysis because most of the tax budget is financed by high‐income earners.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Canadian Journal of Economics/Revue canadienne d'économique
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
