DP9078 Income Taxation of U.S. Households: Facts and Parametric Estimates

Author(s): Nezih Guner, Remzi Kaygusuz, Gustavo Ventura
Publication Date: August 2012
Keyword(s): Households, Tax Progressivity, Taxation
JEL(s): E62, H24, H31
Programme Areas: International Macroeconomics, Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=9078

We use micro data from the U.S. Internal Revenue Service to document how Federal Income tax liabilities vary with income, marital status and the number of dependents. We report facts on the distributions of average taxes, properties of the joint distributions of taxes paid and income, and discuss how taxes are affected by marital status and the number of children. We also provide multiple parametric estimates of tax functions for use in applied work in macroeconomics and public finance.