In recent years, the US, UK and Australia have lowered tax rates on high incomes and expanded tax credits and family transfer payments that are withdrawn on the joint income of a couple. These reforms result in significant changes in the structure of marginal and average income tax rates. In this paper the authors present...

Cross country comparisons of lifecycle labour supplies show that female hours of market work are significantly lower in Australia than in other comparable OECD countries, notably, the US, UK and Sweden. This paper argues that an explanation can be found in the rate structure of the Australian family income tax system, in combination with a...

In 2005 and early 2006 a number of proposals were put forward for restructuring the personal income tax system. Leslie Nielson provides an outline of these suggestions, and provides links to detailed expositions of specific proposals.

Not only this, but cuts in marginal tax rates induce people to work harder in situations where they have an effective choice between work and leisure hours. Davidson shows that the highest earners in Australia already pay much more than their 'share' of charitable donations, and that 'high levels of taxation - especially high rates...

With many countries considering the adoption of a system of earned income tax credits, it is useful to analyse how different types of credits affect labor supply and earnings. Andrew Leigh focuses on a 1999 reform to the UK tax credit system, which increased the value of the credit and reduced the phase-out rate. Using...