Taxation and the Household Saving Rate: Evidence from OECD Countries
March 1, 1998
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Summary
This paper analyzes anew the relationship between taxation and the household saving rate. On the basis of standard savings and tax revenue data from, it provides compelling and robust empirical evidence of a powerful impact of taxes on household savings. In particular, income taxes are shown to affect negatively the household saving rate much more than consumption taxes.
Subject: Consumption taxes, Income and capital gains taxes, Income tax systems, Revenue administration, Social security contributions, Taxes
Keywords: consumption, consumption tax coefficient, Consumption taxes, GDP, GDP ratio, household savings, Income and capital gains taxes, income elasticity, Income tax systems, Social security contributions, tax, tax revenue, tax variable, WP
Pages:
16
Volume:
1998
DOI:
Issue:
036
Series:
Working Paper No. 1998/036
Stock No:
WPIEA0361998
ISBN:
9781451845426
ISSN:
1018-5941
