Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Clinton's and Trump's appeal to voters viewed from perspective of Neidert and Lesthaeghe's SDT framework

Stephenson assessing in-home HIV testing and counseling for male couples

Thompson says mass incarceration causes collapse of Detroit neighborhoods

Highlights

Maggie Levenstein named director of ISR's Inter-university Consortium for Political and Social Research

Arline Geronimus receives 2016 Harold R. Johnson Diversity Service Award

PSC spring 2016 newsletter: Kristin Seefeldt, Brady West, newly funded projects, ISR Runs for Bob, and more

AAUP reports on faculty compensation by category, affiliation, and academic rank

Next Brown Bag

PSC Brown Bags
will resume fall 2016

Melvin Stephens, Jr photo

The impact of separate taxation on the intra-household allocation of assets: evidence from the UK

Publication Abstract

Stephens, Melvin, and Jennifer Ward-Batts. 2004. "The impact of separate taxation on the intra-household allocation of assets: evidence from the UK." Journal of Public Economics, 88(9-10): 1989-2007.

The income tax system in the United Kingdom moved from joint to independent taxation of husbands' and wives' income in 1990. One interesting aspect of independent taxation is the ability for households to choose the division of household assets between the two spouses. This tax reform, therefore, creates an opportunity for households to engage in a form of tax avoidance by shifting their investment income to the spouse with the lower marginal tax rate. We use Family Expenditure Survey (FES) data to examine the impact of this tax reform on the magnitude of investment income shifting between spouses with different marginal tax rates. We find a sizeable shift in the share and incidence of asset income claimed by wives, who typically have lower marginal tax rates, as well as in the incidence of the wife claiming all the household asset income, indicating that households responded to this policy change by reallocating asset ownership.

DOI:10.1016/S0047-2727(03)00067-7 (Full Text)

Licensed Access Link

Browse | Search : All Pubs | Next