Taxing the Rich to Finance Redistribution: Evidence from a Permanent Tax Increase in Singapore

References

• Agarwal S, Qian W (2014) Consumption and debt response to unanticipated income shocks: Evidence from a natural experiment in Singapore. Amer. Econom. Rev. 104(12):4205–4230.Crossref, Google Scholar
• Agarwal S, Qian W (2017) Access to home equity and consumption: Evidence from a policy experiment. Rev. Econom. Statist. 99(1):40–52.Crossref, Google Scholar
• Agarwal S, Liu C, Souleles NS (2007) The reaction of consumer spending and debt to tax rebates—Evidence from consumer credit data. J. Political Econom. 115(6):986–1019.Crossref, Google Scholar
• Agarwal S, Pan J, Qian W (2020) Age of decision: Pension savings withdrawal and consumption and debt response. Management Sci. 66(1):43–69.Link, Google Scholar
• Atkinson AB, Stiglitz JE (1976) The design of tax structure: Direct versus indirect taxation. J. Public Econom. 6(1–2):55–75.Crossref, Google Scholar
• Baugh B, Ben-David I, Park H, Parker JA (2021) Asymmetric consumption smoothing. Amer. Econom. Rev. 111(1):192–230.Crossref, Google Scholar
• Browning M, Collado DM (2001) The response of expenditures to anticipated income changes: Panel data estimates. Amer. Econom. Rev. 91(3):681–692.Crossref, Google Scholar
• Carroll CD (1997) Buffer-stock saving and the life cycle/permanent income hypothesis. Quart. J. Econom. 112(1):1–55.Google Scholar
• Carroll CD, Hall RE, Zeldes SP (1992) The buffer-stock theory of saving: Some macroeconomic evidence. Brookings Papers Econom. Activity 1992(2):61–156.Google Scholar
• Charles KK, Hurst E, Roussanov N (2009) Conspicuous consumption and race. Quart. J. Econom. 124(2):425–467.Crossref, Google Scholar
• Christelis D, Georgarakos D, Jappelli T, Pistaferri L, Van Rooij M (2019) Asymmetric consumption effects of transitory income shocks. Econom. J. (London) 129(622):2322–2341.Crossref, Google Scholar
• Cloyne JS, Surico P (2017) Household debt and the dynamic effects of income tax changes. Rev. Econom. Stud. 84(1):45–81.Crossref, Google Scholar
• Di Maggio M, Kermani A, Keys BJ, Piskorski T, Ramcharan R, Seru A, Yao V (2017) Interest rate pass-through: Mortgage rates, household consumption, and voluntary deleveraging. Amer. Econom. Rev. 107(11):3550–3588.Google Scholar
• Eissa N, Kleven HJ, Kreiner CT (2008) Evaluation of four tax reforms in the United States: Labor supply and welfare effects for single mothers. J. Public Econom. 92(3–4):795–816.Crossref, Google Scholar
• Financial Times (2020) Joe Biden signs $1.9tn stimulus bill into law. Accessed August 1, 2020, https://www.ft.com/content/ecc0cc34-3ca7-40f7-9b02-3b4cfeaf7099.Google Scholar
• Freyaldenhoven S, Hansen C, Pérez JP, Shapiro JM (2021) Visualization, identification, and estimation in the linear panel event-study design. Working Paper No. w29170, National Bureau of Economic Research, Cambridge, MA.Google Scholar
• Gelman M, Kariv S, Shapiro MD, Silverman D, Tadelis S (2014) Harnessingnaturally occurring data to measure the response of spending to income. Science 345(6193):212–215.Crossref, Google Scholar
• Heffetz O (2011) A test of conspicuous consumption: Visibility and income elasticities. Rev. Econom. Statist. 93(4):1101–1117.Crossref, Google Scholar
• Holm MB, Paul P, Tischbirek A (2021) The transmission of monetary policy under the microscope. J. Political Econom. 129(10):2861–2904.Google Scholar
• Hsieh CT (2003) Do Consumers react to anticipated income changes? Evidence from the Alaska permanent fund. Amer. Econom. Rev. 93(1):397–405.Crossref, Google Scholar
• Jappelli T, Pistaferri L (2010) The consumption response to income changes. Annu. Rev. Econom. 2(1):479–506.Crossref, Google Scholar
• Jappelli T, Pistaferri L (2014) Fiscal policy and MPC heterogeneity. Amer. Econom. J. Macroeconom. 6(4):107–136.Crossref, Google Scholar
• Johnson DS, Parker JA, Souleles NS (2006) Household expenditure and the income tax rebates of 2001. Amer. Econom. Rev. 96(5):1589–1610.Crossref, Google Scholar
• Kaplan G, Violante GL, Weidner J (2014) The wealthy hand-to-mouth. Working Paper No. w20073, National Bureau of Economic Research, Cambridge, MA.Google Scholar
• Kopczuk W (2019) Reflections on taxation in support of redistributive policies. Blanchard O, Rodrik D, eds. Combating Inequality: Rethinking Policies to Reduce Inequality in Advanced Economies (MIT Press, Cambridge, MA), 1–8.Google Scholar
• Krugman P (2020) The case for permanent stimulus. Accessed August 1, 2020, https://voxeu.org/article/case-permanent-stimulus.Google Scholar
• Olafsson A, Pagel M (2018) The liquid hand-to-mouth: Evidence from personal finance management software. Rev. Financial Stud. 31(11):4398–4446.Crossref, Google Scholar
• Parker JA (1999) The reaction of household consumption to predictable changes in social security taxes. Amer. Econom. Rev. 89(4):959–973.Crossref, Google Scholar
• Parker JA, Souleles NS, Johnson DS, McClelland R (2013) Consumer spending and the economic stimulus payments of 2008. Amer. Econom. Rev. 103(6):2530–2553.Crossref, Google Scholar
• Scholnick B (2013) Consumption smoothing after the final mortgage payment: Testing the magnitude hypothesis. Rev. Econom. Statist. 95(4):1444–1449.Crossref, Google Scholar
• Shapiro MD, Slemrod J (2003a) Consumer response to tax rebates. Amer. Econom. Rev. 93(1):381–396.Crossref, Google Scholar
• Shapiro MD, Slemrod J (2003b) Did the 2001 tax rebate stimulate spending? Evidence from taxpayer surveys. Tax Policy Econom. 17(January):83–109.Crossref, Google Scholar
• Souleles NS (1999) The response of household consumption to income tax refunds. Amer. Econom. Rev. 89(4):947–958.Crossref, Google Scholar
• Souleles NS (2000) College tuition and household savings and consumption. J. Public Econom. 77(2):185–207.Crossref, Google Scholar
• Souleles NS (2002) Consumer response to the Reagan tax cuts. J. Public Econom. 85(1):99–120.Crossref, Google Scholar
• Stephens Jr M (2003) “3rd of tha month”: Do social security recipients smooth consumption between checks? Amer. Econom. Rev. 93(1):406–422.Google Scholar
• Stephens M (2006) Paycheque receipt and the timing of consumption. Econom. J. (London) 116(513):680–701.Google Scholar
• Stephens Jr M (2008) The consumption response to predictable changes in discretionary income: Evidence from the repayment of vehicle loans. Rev. Econom. Statist. 90(2):241–252.Google Scholar
• Stephens M, Unayama T (2011) The consumption response to seasonal income: Evidence from Japanese public pension benefits. Amer. Econom. J. Appl. Econom. 3(4):86–118.Crossref, Google Scholar
• Tanzi V, Zee HH (1998) Taxation and the household saving rate: Evidence from OECD countries. IMF Working Papers 98(36):1.Crossref, Google Scholar
• Washington Post (2020) Senate, White House reach $2 trillion stimulus deal to blunt coronavirus fallout. Accessed August 1, 2020, https://www.washingtonpost.com/us-policy/2020/03/24/trump-coronavirus-congress-economic-stimulus/.Google Scholar
• Zeldes SP (1989a) Consumption and liquidity constraints: An empirical investigation. J. Political Econom. 97(2):305–346.Crossref, Google Scholar
• Zeldes SP (1989b) Optimal consumption with stochastic income: Deviations from certainty equivalence. Quart. J. Econom. 104(2):275.Crossref, Google Scholar
• Zidar O (2019) Tax cuts for whom? Heterogeneous effects of income tax changes on growth and employment. J. Political Econom. 127(3):1437–1472.Crossref, Google Scholar