The Distributional and Revenue Consequences of Reforming the Mortgage Interest Deduction

Cole, Adam; Gee, Geoffrey; Turner, Nicholas

doi:10.17310/ntj.2011.4.04

Cited by 14 publications

(10 citation statements)

References 5 publications

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“…That is, this is a counterfactual analysis where we assume that retail prices would not adjust if coupons were no longer available. This is similar to the “static” assumption used in empirical studies of tax expenditures (e.g., Cole et al ). Table reports the results.…”

Section: Mechanismsmentioning

confidence: 70%

Who Benefits from Repealing Tampon Taxes? Empirical Evidence from New Jersey

Cotropia¹,

Rozema²

2018

J Empirical Legal Studies

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Many state and local governments exclude some medical products from the sales tax base, including some that are primarily used by men such as hair growth products. However, tampons and other menstrual hygiene products are subject to sales taxes in most states. A recent social movement advocates for the repeal of these “tampon taxes” and several class action lawsuits have been filed against states citing equal protection violations. In this article, we use the 2005 elimination of menstrual hygiene products from the sales tax base in New Jersey as a natural experiment to study who benefits from the repeal of tampon taxes. We find that the tax break is fully shifted to consumers, but that the tax break is not distributed equally. Low‐income consumers enjoy a benefit from the repeal of the tax by more than the size of the repealed tax. For high‐income consumers, the tax break is shared equally with producers. The results suggest that repealing tampon taxes removes an unequal tax burden and could make menstrual hygiene products more accessible for low‐income consumers.

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Section: Mechanismsmentioning

confidence: 70%

Who Benefits from Repealing Tampon Taxes? Empirical Evidence from New Jersey

Cotropia¹,

Rozema²

2018

J Empirical Legal Studies

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“…Note that the tax expenditures estimated in this article generally do not take behavioral responses into account when estimating tax liabilities without the MID—although they do assume a mechanical switching of tax filers from itemizing to taking standard deductions when this results in a lower tax liability. Some studies consider possible behavioral responses, such as portfolio reallocations (Gervais and Pandey 2008; Cole, Gee, and Turner 2011; Poterba and Sinai 2011). 4 I briefly discuss alternative results based on a simple adjustment for behavioral effects using estimates from Hanson and Martin (2014).…”

Section: Methods For Estimating Mid Tax Expendituresmentioning

confidence: 99%

The Mortgage Interest Deduction: Causes of Fluctuations in a Procyclical Tax Expenditure

Splinter

2019

Public Finance Review

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The mortgage interest deduction (MID) is the largest source of US federal homeowner support. I estimate that this tax expenditure fluctuated between 0.2 and 0.9 percent of gross domestic product (GDP) over the past five decades. About half of these fluctuations were caused by changes in tax policy, rather than changes in the housing market. Fluctuations in the MID tax expenditure do not tend to move with homeownership rates; instead, they are procyclical, meaning the MID may exacerbate business cycles.

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“…Given their considerable utility, static microsimulations are a widely used method to estimate the effect of policy changes on outcomes of interest. 18 For instance, academics have used static microsimulations to assess the stabilizing effect of the federal income tax system over the business cycle (e.g., Auerbach and Feenberg, 2000;Saez, 2004;Kingi and Rozema, 2017) and the distributional effects of tax expenditures (e.g., Cole et al, 2011;Hemel and Rozema, 2017). 19 Additionally, government agencies around the world use static models to estimate the effects of tax and transfer policies.…”

Section: Introductionmentioning

confidence: 99%

Rethinking Law School Tenure Standards

2019

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Academic departments decide on tenure standards with limited evidence about their accuracy and efficacy. We study the implications of stricter tenure standards in law schools, an environment in which 95 percent of all tenure track hires receive tenure. To do so, we construct a novel dataset of the articles and citation counts of 1,720 law professors who were granted tenure at top-100 law schools between 1970 and 2007. We first show that pre-tenure research records are highly predictive of future academic impact. We then simulate the costs and benefits of applying stricter tenure standards using predictions of law professors' future academic impact at the time of their tenure decision. Of faculty members not tenured under stricter standards, only 5 percent have greater future academic impacts than their counterfactual replacements. Moreover, increasing tenure denials by 10 percentage points would increase the academic impact of a school's median professor by over 50 percent.

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The Distributional and Revenue Consequences of Reforming the Mortgage Interest Deduction

Cited by 14 publications

References 5 publications

Who Benefits from Repealing Tampon Taxes? Empirical Evidence from New Jersey

Who Benefits from Repealing Tampon Taxes? Empirical Evidence from New Jersey

The Mortgage Interest Deduction: Causes of Fluctuations in a Procyclical Tax Expenditure

Rethinking Law School Tenure Standards

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