Mika Maliranta (@maliranta.bsky.social)

Taxing Top Incomes in the Emerging World—Fiscal and Economic Impact under the Microscope (Forthcoming Article) - This paper studies taxpayer responses to an increase in the top marginal tax rate in South Africa, drawing on rich administrative data and a transparent identification strategy. We show that treated taxpayers strongly reduced their reported taxable income in response to the reform, with adjustments along a broad range of taxable income components. While tax evasion and avoidance explain a sizable share of this response, there is also indication for reduced work effort and business performance of South African corporations led by treated taxpayers—suggesting that raising taxes on top incomes may entail broader economic repercussions. https://www.aeaweb.org/articles?id=10.1257/pol.20240403&from=f