Taxation and the Household Saving Rate: Evidence from OECD Countries

Author/Editor:

Howell H Zee ; Vito Tanzi

Publication Date:

March 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 1998/036

Subject:

Consumption taxes Income and capital gains taxes Income tax systems Revenue administration Social security contributions Taxes

English

Publication Date:

March 1, 1998

ISBN/ISSN:

9781451845426/1018-5941

Stock No:

WPIEA0361998

Pages:

16

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