Marginal Tax Rate - Definition
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Academic Research on Marginal Tax Rate Debt and themarginal tax rate, Graham, J. R. (1996). Debt and the marginal tax rate.Journal of financial Economics,41(1), 41-73. This paper presents a question of whether taxes affect corporate debt policy? This paper tests whether the incremental use of debt is positively related to simulated firm-specific marginal tax rates that account for net operating losses, investment tax credits, and the alternative minimum tax. Proxies for the corporatemarginal tax rate, Graham, J. R. (1996). Proxies for the corporate marginal tax rate.Journal of Financial Economics,42(2), 187-221. This paper focuses on how best to measure the corporate marginal tax rate, which is an important input into financial analysis of the cost of capital, financing policy, corporate hedging, and corporate reorganizations. Which tax rate do people use: Average or marginal?, De Bartolome, C. A. (1995). Which tax rate do people use: Average or marginal?.Journal of public Economics,56(1), 79-96. This study investigates by experiment the tax rate used by individuals when making marginal economic decisions. Result shows that there are at least as many individuals who use the average tax rate as if it is the marginal tax rate, as individuals who use the true marginal tax rate. Measuring the averagemarginal tax ratefrom the individual income tax. Barro, R. J., & Sahasakul, C. (1983). Measuring the average marginal tax rate from the individual income tax. This paper explores the economic effects of taxation on the configuration of marginal tax rates. This study considers the appropriate measure of a marginal tax rate for the federal individual income tax, which has a graduated-rate structure and allows for numerous legal and illegal deductions from total income. It also discuss the dispersion of marginal tax rates, as well as the behavior of average tax rates and deductions from taxable income. Taxation, inflation, and the effectivemarginal tax rateon capital in Canada, Boadway, R., Bruce, N., & Mintz, J. (1984). Taxation, inflation, and the effective marginal tax rate on capital in Canada.Canadian journal of Economics, 62-79. This paper analyses the impact of corporate and personal income taxes and inflation on the cost of investing in depreciable and inventory capital in Canada. In the first part of the analysis the paper shows how openness of Canadian capital markets affects the determination of interest rates in the economy. It then present cost of capital and effective tax rate figures for four different types of capital for the period 1963-78. The use of marginal tax rates in decision making: The impact of tax rate visibility, Rupert, T. J., & Wright, A. M. (1998). The use of marginal tax rates in decision making: The impact of tax rate visibility.The Journal of the American Taxation Association,20(2), 83. How work effort responds to wage taxation: An experimental test of a zero topmarginal tax rate, Sillamaa, M. A. (1999). How work effort responds to wage taxation: An experimental test of a zero top marginal tax rate.Journal of Public Economics,73(1), 125-134. This study presents theorems that showed work effort could increase if the marginal tax rate was zero at the top income. This was tested in a laboratory experiment. The prediction was supported. The choice of incentive stock options vs. nonqualified options: Amarginal tax rateperspective, Austin, J. R., Gaver, J. J., & Gaver, K. M. (1998). The choice of incentive stock options vs. nonqualified options: A marginal tax rate perspective.The Journal of the American Taxation Association,20(2), 1. This paper tests the proposition that tax motivations determine the choice between ISOs and nonqualified options by examining a sample of 364 option grants by 195 firms during the 1981 to 1984 period. These tests employ four alternative measures of tax status, ranging from a simple dummy variable based on the firm's net operating loss carryforward position to a sophisticated simulation of expected exercise year and projected marginal tax rate in that year. Hourly wage rate and taxable labor income responsiveness to changes in marginal tax rates, Blomquist, S., & Selin, H. (2010). Hourly wage rate and taxable labor income responsiveness to changes in marginal tax rates.Journal of Public Economics,94(11-12), 878-889. This paper examines the introduction of a voluminous literature estimating the taxable income elasticity which has emerged as an important field in empirical public economics. This study uses a rich panel data set and a sequence of tax reforms that took place in Sweden during the 1980s to estimate the elasticity of the hourly wage rate as well as the taxable labor income elasticity with respect to the net-of-tax rate. A note on themarginal tax ratein a finite economy, Rell, A. A. (1985). A note on the marginal tax rate in a finite economy.Journal of Public Economics,28(2), 267-272. Marginal Tax RateCuts and the Public Tax Debate, Calomiris, C. W., & Hassett, K. A. (2002). Marginal Tax Rate Cuts and the Public Tax Debate.National Tax Journal,55(1), 119-131.