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Loews Philadelphia, Parlor 1
Hosted By:
National Tax Association
tax break made available to first-time buyers. By exempting properties below a defined
threshold from transaction taxes, Irish law generated a notch that strongly discouraged
first-time (‘targeted’) buyers from bidding above that threshold. However, this policy
created a spillover effect on non-targeted individuals, by incentivizing them to bid just
above that threshold. A theoretical analysis predicts excess mass on both sides of the
notch, delineated by tax status. The empirical strategy reveals this double-bunching,
highlighting sophisticated bidding strategies by both targeted and non-targeted groups.
Property Taxes: Morale and Capitalization
Paper Session
Friday, Jan. 5, 2018 2:30 PM - 4:30 PM
- Chair: Enda Patrick Hargaden, University of Tennessee-Knoxville
The Hated Property Tax: Salience, Tax Rates, and Tax Revolts
Abstract
N/AMeasuring Both Direct and Spillover Effects of Taxation: Evidence From a Property Tax Break for First-Time Buyers
Abstract
This paper identifies both the direct and indirect (spillover) effects of a propertytax break made available to first-time buyers. By exempting properties below a defined
threshold from transaction taxes, Irish law generated a notch that strongly discouraged
first-time (‘targeted’) buyers from bidding above that threshold. However, this policy
created a spillover effect on non-targeted individuals, by incentivizing them to bid just
above that threshold. A theoretical analysis predicts excess mass on both sides of the
notch, delineated by tax status. The empirical strategy reveals this double-bunching,
highlighting sophisticated bidding strategies by both targeted and non-targeted groups.
Impact of Housing Tax Preferences on Home Values and Neighborhood Sorting
Abstract
N/ADiscussant(s)
Joel Slemrod
,
University of Michigan
William Hoyt
,
University of Kentucky
JEL Classifications
- H2 - Taxation, Subsidies, and Revenue
- H3 - Fiscal Policies and Behavior of Economic Agents