Individuals' responsiveness to marginal tax rates: Evidence from bunching in the Australian personal income tax

We examine individuals’ responsiveness to marginal tax rates using the universe of Australian taxpayer records from 2000 to 2018. Unlike studies from...

Hundreds and thousands: bunching at positive, salient tax balances and the cost of reducing tax liabilities

Australian taxpayers display reference-dependent preferences when filing their tax returns - they bunch at positive and salient thresholds. We develop a...

Optimal deductibility: Theory, and evidence form a bunching decomposition

I define a new tax instrument, the ‘deductibility rate’, which specifies the proportion of eligible expenses a taxpayer may deduct when preparing her...