Do Marginal Taxes Matter?
) (Department of Economics, University of Aarhus, Denmark) Abstract Faced with ageing populations many European countries may be tempted to attract immigrants. One way to do this is to offer tax incentives. Since the decision to migrate is a discrete choice it should be average taxes that are important for the migration decision. If, however, the supply of working hours is endogenous it is shown that marginal taxes are also important for the migration decision, even after controlling for average taxes. Hence, countries interested in attracting immigrants can do so even without reducing average taxes by having less progressive tax systems than other countries. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the
Related Questions
- How do I fill out Line 3 of the IL UI-3/40 IDEAS form? It says to report wages in excess of $12,960 per worker per calendar year. The calendar year part is throwing me off. Isnt it just the wages in that qtr over the base amount? Pls. help.
- How is the marginal rate of tax calculated for someone who has no income but only capital gains?
- How Big a Tax Cut?
