Taxation and the Household Saving Rate

Taxation and the Household Saving Rate

Evidence From Oecd Countries

by Mr. Howell H. Zee, Mr. Vito Tanzi

16 pages· 1998· ISBN 9781451892901
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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.

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