Zidar, Owen M. <br/><br/>
Tax Cuts For Whom? Heterogeneous Effects of Income Tax Changes on Growth and Employment / 
Owen M. Zidar. 
 - Cambridge, Mass.  National Bureau of Economic Research  2015. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w21035 .
 - Working Paper Series (National Bureau of Economic Research)  no. w21035. .
<br/><br/> March 2015. 
<br/><br/> This paper investigates how tax changes for different income groups affect aggregate economic activity. I construct a measure of who received (or paid for) tax changes in the postwar period using tax return data from NBER's TAXSIM. I aggregate each tax change by income group and state. Variation in the income distribution across U.S. states and federal tax changes generate variation in regional tax shocks that I exploit to test for heterogeneous effects. I find that the positive relationship between tax cuts and employment growth is largely driven by tax cuts for lower-income groups, and that the effect of tax cuts for the top 10% on employment growth is small. 
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