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THE RESPONSE OF THE SELF-EMPLOYED TO THE TAX REFORM ACT OF 1986

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Date Issued:
2013
Abstract/Description:
The decisions of the self-employed are of empirical interest because these individuals report their income under the personal income tax system. The U.S. Bureau of Economic Analysis estimates that the personal income tax system is the biggest source of revenue for the government. In this paper I use data from the Panel Study of Income Dynamics (PSID) to analyze the effect that The Tax Reform Act of 1986 had on the decision to become or remain self-employed. To accomplish this I will use a simple difference method that compares the movement between employment groups in the aftermath of The Tax Reform Act of 1986 (treatment period) to the movement between employment groups before this tax legislation was enacted (control period). I find that The Tax Reform Act of 1986 (TRA86) had an adverse effect on self-employment and actually caused more unemployment.
Title: THE RESPONSE OF THE SELF-EMPLOYED TO THE TAX REFORM ACT OF 1986.
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Name(s): Bookhardt IV, Samuel, Author
Guldi, Melanie, Committee Chair
University of Central Florida, Degree Grantor
Type of Resource: text
Date Issued: 2013
Publisher: University of Central Florida
Language(s): English
Abstract/Description: The decisions of the self-employed are of empirical interest because these individuals report their income under the personal income tax system. The U.S. Bureau of Economic Analysis estimates that the personal income tax system is the biggest source of revenue for the government. In this paper I use data from the Panel Study of Income Dynamics (PSID) to analyze the effect that The Tax Reform Act of 1986 had on the decision to become or remain self-employed. To accomplish this I will use a simple difference method that compares the movement between employment groups in the aftermath of The Tax Reform Act of 1986 (treatment period) to the movement between employment groups before this tax legislation was enacted (control period). I find that The Tax Reform Act of 1986 (TRA86) had an adverse effect on self-employment and actually caused more unemployment.
Identifier: CFH0004426 (IID), ucf:45096 (fedora)
Note(s): 2013-05-01
B.S.B.A.
Business Administration, Dept. of Economics
Bachelors
This record was generated from author submitted information.
Subject(s): Taxes
Self-employed
1986
Persistent Link to This Record: http://purl.flvc.org/ucf/fd/CFH0004426
Restrictions on Access: campus 2018-04-01
Host Institution: UCF

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