Consumer response to the timing of income: evidence from a change in tax withholding

Article Abstract:

Former US president George Bush proposed to stimulate the economy in 1992 by introducing a package of fiscal measures. One of the proposals included the reduction in standard rates of withholding for income taxes. It reduced an employee's withholding tax by $29. This change in withholding is an unusual experiment for studying consumer behavior. The propensity to spend is not a function of the change in income. Findings do not support the idea that smooth consumption arises out of liquidity constraints.

Research, Economic policy, Withholding tax, Bush, George H.W.

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Household expenditure and the income tax rebates of 2001

Article Abstract:

The impact of tax income rebates on household expenditures is discussed by comparing several households that received their rebates at different times and analyzing trends in consumption expenditures.

United States, Taxes, Analysis, Economic aspects, Tax policy

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Consumer response to tax rebates

Article Abstract:

A survey on the proposed usage of the tax rebates by consumers is discussed.

Michigan, Usage, Surveys

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