Taxpayer Confusion over Predictable Tax Liability Changes: Evidence from the Child Tax Credit

by Federal Reserve Board

This paper offers two contributions to the literature on taxpayer perceptions of the taxsystem. Our first contribution is that we develop a model that generates predictions overhow taxpayers update their beliefs about their marginal tax rates when they experiencean unexpected change in their tax liability. Our model is an extension of a standard full information, rational agent model that allows for imperfect knowledge of the income taxschedule. In...

• Format: Paperback
• Language: English
• ISBN: 1499136765
• ISBN13: 9781499136760
• Release Date: April 2014
• Publisher: Createspace Independent Publishing Platform
• Length: 42 Pages
• Weight: 0.27 lbs.
• Dimensions: 0.1" x 8.5" x 11.0"