Taxes and telework: The impacts of state income taxes in a work-from-home economy

IF 5.7 1区 经济学 Q1 ECONOMICS
David R. Agrawal, Jan K. Brueckner
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Abstract

This paper studies the interstate effects of decentralized taxation and spending when work-from-home allows fully remote work from another state. In this setting, a state’s population and employment levels are decoupled, making the impact of state tax differentials radically different from when individuals must live and work in the same state. The impacts depend on whether income is taxed at the location of the employer (source) or employee (residence). Our main findings show that a shift from a non-WFH economy to a work-from-home (WFH) economy reduces employment and raises the wage in the high-tax state, with larger effects under source taxation. The logic is that wages are lower in the high-tax state in the absence of WFH, and with interstate wage equality required when residences and workplaces are decoupled, WFH causes a loss of employment and an increase in the wage in that state. Once WFH is established, a tax increase in the high-tax state either reduces employment further while raising the wage (source taxation) or leaves the labor market unaffected (residence taxation). We also show that the non-WFH equilibrium and the source-tax equilibrium under WFH are inefficient, while the residence-tax WFH equilibrium is efficient.
税收和远程办公:州所得税对在家工作经济的影响
本文研究了当在家工作允许从另一个州完全远程工作时,分散税收和支出的州际效应。在这种情况下,一个州的人口和就业水平是脱钩的,这使得各州税收差异的影响与个人必须在同一个州生活和工作的影响截然不同。影响取决于收入是在雇主(来源)还是雇员(居住地)征税。我们的主要研究结果表明,在高税收州,从非在家工作经济向在家工作经济的转变减少了就业,提高了工资,在源税下的影响更大。其逻辑是,在没有WFH的高税收州,工资水平较低,而当住宅和工作场所脱钩时,州际工资平等是必要的,WFH会导致该州的就业损失和工资上涨。一旦建立了WFH,高税收州的增税要么在提高工资的同时进一步减少就业(来源税),要么不影响劳动力市场(居住税)。研究还表明,在收入收入收入下,非收入收入收入均衡和源税均衡是低效的,而居住税收入均衡是高效的。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
10.60
自引率
4.80%
发文量
64
期刊介绍: The Journal of Urban Economics provides a focal point for the publication of research papers in the rapidly expanding field of urban economics. It publishes papers of great scholarly merit on a wide range of topics and employing a wide range of approaches to urban economics. The Journal welcomes papers that are theoretical or empirical, positive or normative. Although the Journal is not intended to be multidisciplinary, papers by noneconomists are welcome if they are of interest to economists. Brief Notes are also published if they lie within the purview of the Journal and if they contain new information, comment on published work, or new theoretical suggestions.
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