Who Bears the Burden of Local Taxes?
Additional information
Authors
Brülhart M.,
Danton J.,
Parchet R.,
Schläpfer J.
Type
Journal Article
Year
2025
Language
English
Abstract
We study the distributional effects of local taxes. They turn out to be strikingly progressive. We calibrate a municipality-level structural model with quasi-experimental estimates of taxpayer mobilty by family type. Households with children are found to be less mobile than households without children and to have stronger preferences for locally provided public goods. Combined with capitalization of taxes into housing prices and nonhomothetic housing demand, this implies that the incidence of local income taxes mainly falls on high-income childless households. Increases in local income taxes, even if flat rate, turn out to be more progressive than property taxes. (JEL H22, H71, R21, R31)
Journal
American Economic Journal: Economic Policy
Volume
17
Number ( Month )
1
Pages (or article number)
464-505
ISSN
1945-7731, 1945-774X
Diffusion
License
License undefined
Visibility
Private
