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Title: Do Income Tax Breaks for the Elderly Affect Economic Growth?

Citation Type: Miscellaneous

Publication Year: 2017

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Abstract: Income tax breaks for elderly taxpayers are sizable, widespread and potentially affect economic growth through migration-induced population change and other behaviors. We provide the first investigation into their growth effects, taking a multi-pronged empirical approach to US state-level data since 1977. Some analyses include panel-interval and error- correction models combined with variation in state-level policies over time. Alternative analyses address policy endogeneity and diminish migration effects by using how changes in federal tax law manifest at the state-level. Results suggest tax breaks for lower- and middle-income elderly substantially decrease growth while higher-income breaks, often promoted as enhancing growth, have no impact.

Url: https://cheps.sdsu.edu/docs/seminar/Conway_Tax _Breaks_Elderly.pdf

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Authors: Brewer, Ben; Conway, Karen, S; Rork, Jonathan, C

Publisher: University of Hartford

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

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