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Owen Zidar Profile
Owen Zidar

@omzidar

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Professor of Economics and Public Affairs at Princeton University.

Princeton, NJ
Joined October 2008
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@omzidar
Owen Zidar
6 days
@gchodorowreich , Eric Zwick, and I have a new paper for the journal of economic perspectives out today. We assess the business provisions of the 2017 Tax Cuts and Jobs Act, the biggest corporate tax cut in US history. We draw 5 lessons...
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@omzidar
Owen Zidar
9 months
Average household wealth in the US now exceeds one million dollars based on the latest 2022 data in the SCF (). The median household has 193K in wealth
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@omzidar
Owen Zidar
5 months
We have a new paper out today:
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@omzidar
Owen Zidar
1 year
The revenue potential of capital gains taxes is larger than what many expect
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@omzidar
Owen Zidar
9 months
Source
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@omzidar
Owen Zidar
2 years
Re NBERWP 30396 , we have written a lot of replies and assembled a lot of evidence on top wealth in America. Paper: Appendix: Reply to SZ21: Reply to SZ20:
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@omzidar
Owen Zidar
7 months
Measuring income inequality: A primer on the debate | Brookings
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@omzidar
Owen Zidar
9 months
We want to clarify two things about our working paper on the investment and tax revenue effects of the 2017 tax reform () @gchodorowreich
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@omzidar
Owen Zidar
9 months
How Do Corporate Taxes Affect Economic Activity? | NBER
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@omzidar
Owen Zidar
8 months
My student @CabezonFran has a very interesting job market paper that investigates how the presence of a large informal sector affects optimal pension design
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@omzidar
Owen Zidar
9 months
2023 Job Market Candidates - Princeton University - Department of Economics
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@omzidar
Owen Zidar
11 months
There's a lot of wealth south of Richmond Notes: we used state wealth estimates from our top wealth paper to estimate the share of wealth above and below the latitude of Richmond. We used county population to apportion the wealth of states that are split
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@omzidar
Owen Zidar
1 year
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@omzidar
Owen Zidar
5 months
Congrats @EDerenoncourt !
@SloanFoundation
Sloan Foundation
5 months
We have today announced the names of the 2024 Sloan Research Fellows! Congratulations to these 126 outstanding early-career researchers:
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@omzidar
Owen Zidar
9 months
@mattyglesias @kearney_melissa Great interview. I very much liked and agree with this point that @kearney_melissa made about the allocation of government spending: “The federal government spends a pittance on kids compared to the elderly. We spend six times more on the elderly per capita than kids”
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@omzidar
Owen Zidar
4 months
A nation of car dealers
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@omzidar
Owen Zidar
5 months
Firms that got larger tax changes increased their investment by more than those that got smaller tax changes
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@omzidar
Owen Zidar
4 months
Am excited to be back in Berkeley tomorrow for Mar 18, Seminar 231, Public Finance: “Tax Policy and Investment in a Global Economy”
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@omzidar
Owen Zidar
11 months
Was looking at the line item totals for corporate tax returns () #TaxTwitter It seems crazy to me that there is 4.77T of mystery meat "other deductions" on line 26. This mystery meat exceeds salary and wages by ~1T! What are the big "other deductions"?
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@omzidar
Owen Zidar
5 months
We also examine the effects of different provisions of the reform and find that expensing has a higher bang-for-the-buck than the statutory corporate tax rate decrease
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@omzidar
Owen Zidar
9 months
1. While we appreciate recent coverage of our working paper in this WSJ op-ed () and this @TaxFoundation summary (), we want to clarify that we find that the 2017 reform had substantial negative effects on corporate tax revenue.
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@omzidar
Owen Zidar
1 year
@Brad_Setser 's testimony on Pharma Manufacturers and International Tax Policy is worth reading!
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@omzidar
Owen Zidar
3 months
A discrimination report card
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@omzidar
Owen Zidar
7 months
#ASSA2024 If you are around tomorrow and are interested in recent work on the incidence of corporate taxes, please come check out this session at 10:15
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@omzidar
Owen Zidar
9 months
For (b), Figure 9 shows that there are approx zero dynamic growth effects on tax revenue due to two opposing forces: the positive effects from higher capital accumulation and labor compensation are offset by the negative effects of higher investment expensing costs.
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@omzidar
Owen Zidar
1 year
1. Party like it's 1997: Reverting to the tax code of January 1997 would raise trillions in tax revenue and increase progressivity via modest increases in dividend taxes, estate taxes, capital gains, and top individual incomes
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@omzidar
Owen Zidar
1 year
Game Theory Scores Big at Dartmouth | Dartmouth
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@omzidar
Owen Zidar
11 months
Today’s wsj editorial seems confused. If the goal is to have a pro-growth corporate tax system, why does it oppose a refundable r and d tax credit? It would be more generous to have refundability and benefit some younger innovative firms that are not yet profitable
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@omzidar
Owen Zidar
4 months
Tax Policy and Investment in a Global Economy | BFI -
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@omzidar
Owen Zidar
5 months
Job posting- Research and Data Manager | Industrial Relations Section ⁦ @PrincetonEcon
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@omzidar
Owen Zidar
10 months
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@omzidar
Owen Zidar
3 months
Am exited to see what this great team at @The_Budget_Lab puts together - congratulations and best of luck with the launch!
@marthagimbel
Martha Gimbel
3 months
So excited to announce that @natasharsarin and @dannyyagan and I are launching @the_budget_lab at Yale Law School. Budget scoring is an incredibly important part of the policy process and our hope is to bring a new perspective, with a focus on innovation and transparency. 1/
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@omzidar
Owen Zidar
1 year
The updated version of Figure 1 from our "Party like it's 1997" tax plan is striking. Reverting back to the tax code of 1997 would help bring us closer to running surpluses again Party like its 1997: Data: OMB Historical Table 1.2 ()
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@omzidar
Owen Zidar
7 months
@saskatchewin we should raise the minimum wage to X dollars where X is a big number
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@omzidar
Owen Zidar
9 months
At the household level in terms of net worth in the SCF in 2022, the top 10%, 1%, 0.1%, and 0.01% shares of wealth are 73.4%, 35.1%, 14.7%, and 5.5%, respectively. The 2022 household net worth thresholds to be in those groups are 1.9M, 13.6M, 62M, and 264M, respectively.
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@omzidar
Owen Zidar
10 months
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@omzidar
Owen Zidar
9 months
The tax revenue effects are the sum of (a) static and (b) dynamic effects. For (a), we cite the @jctgov for the static effect estimates, which are -1.35 trillion over 10 years.
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@omzidar
Owen Zidar
8 months
Taxing unrealized income could lead to surprising results, but so could *not* taxing unrealized income. via @opinion
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@omzidar
Owen Zidar
1 year
New book for #TaxTwitter “sensible taxes and practical politics” by Jim Hines
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@omzidar
Owen Zidar
1 year
Is there data on the universe of boat owners in the U.S.? I'm mainly interested in the geographic distribution but would also find boat cost or value to be useful. Perhaps there is info based on new boat licenses or taxes? I found this from a quick search
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@omzidar
Owen Zidar
1 year
An economic slowdown and persistent inflation will hurt Social Security’s finances, draining its reserves one year earlier than previously estimated via @WSJ
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@omzidar
Owen Zidar
2 months
Do you know of any estimates of top 1 (or top .1) shares of income and/or wealth in France right before the French Revolution?
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@omzidar
Owen Zidar
5 months
Taxes affect cash flows as follows:
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@omzidar
Owen Zidar
5 months
We estimate parameters from this reduced-form response and to quantify the long-run effects on capital accumulation and tax revenue. Model-implied capital increases by 7%.
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@omzidar
Owen Zidar
9 months
2. The paper is still a work-in-progress. We are refining it based on helpful feedback that we received at the NBER from @jasonfurman () and other folks. Additional feedback is most welcome!
@jasonfurman
Jason Furman
9 months
Taxes actually do matter (Part I). Companies that saw larger reductions in tax rates from the TCJA also experienced larger increases in investment in the years that followed. From a cool new paper by @gchodorowreich @omzidar Eric Zwick & Matthew Smith
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@omzidar
Owen Zidar
5 months
The TJCA of 2017 was the largest corporate tax reduction in the history of the United States. It lowered the top statutory corporate tax rate from 35% to 21%, changed a host of investment incentives, and fundamentally altered the treatment of international income.
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@omzidar
Owen Zidar
11 months
@RichardRubinDC Glad to hear this! It’s a good start but 75 is very very small relative to the number of partnerships. I hope the irs is able to push harder on this and increasing auditing activity and capacity swiftly
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@omzidar
Owen Zidar
9 months
The total effects on tax revenue (i.e. the sum of static and dynamic effects) are therefore just the static mechanical effects, which were quite large and negative (i.e., the effect on tax revenue was around a -135B decline compared to the pre-tcja baseline).
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@omzidar
Owen Zidar
5 months
In sum: 1. Domestic investment ↑ due to large tax changes 2. Provisions targeting intangible capital increased foreign tangible capital 3. Complementarity: domestic response partly due to international provisions 4. Total investment response too small to overcome lower tax rev
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@omzidar
Owen Zidar
8 months
This post lines up perfectly with data on the rich in America, which is full of these #MainStreetMillionaires @sweatystartup Im curious to learn more/chat with some of these folks if you have their names/stories See here for more on the data …
@sweatystartup
Nick Huber
8 months
Who you think of when you think of a successful business person: Steve Jobs, Bill Gates, Elon Musk. Examples of rich people i know who had the courage to start boring businesses: 1) 30 year plumber who got kicked out of my country club for trying to fight the starter. 2)
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@omzidar
Owen Zidar
1 year
According to this report, the Internal Revenue Service (IRS) audits few large partnerships—54 in tax year 2019! That's absolutely astonishing to me.
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@omzidar
Owen Zidar
1 year
There are a ton of Main Street multimillionaires … Washington edition ()
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@omzidar
Owen Zidar
1 year
I suspect for reasons in the paper above that federal tax scorekeepers are also underestimating the revenue potential of capital gains tax increases
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@omzidar
Owen Zidar
1 year
We tried a tip from my sister in law in Oregon to try to improve air quality inside (in addition to running a hepa filter). Boiling thyme in water in Princeton right now results in this… yikes
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@omzidar
Owen Zidar
9 months
That's what we mean in the last line of the abstract by "the fall in total corporate tax revenue from the tax cut is close to the static effect."
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@omzidar
Owen Zidar
1 year
Does anyone know of a good resource that describes important provisions in the Tax Cuts and Jobs Act by industry? #TaxTwitter for example, this presentation goes into detail on the impact of tcja on electric utilities.
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@omzidar
Owen Zidar
1 year
Helping a friend: do you know where I could find revenue projections over the next 5-10 years of (1) tomato paste and (2) paper? Thanks very much
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@omzidar
Owen Zidar
1 year
Source: 2023 ERP ()
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@omzidar
Owen Zidar
9 months
The draft explains this point here: "However, the combined dynamic revenue effects in the first 10 years average less than 2% of pre-TCJA corporate revenue per year, well short of erasing the static revenue decline shown in table 1."
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@omzidar
Owen Zidar
1 year
NY Millionaire Migration Data
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@omzidar
Owen Zidar
1 year
This was in our 2016 paper. I really hope we can do much better by 2026 on this front
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@omzidar
Owen Zidar
1 year
@omzidar
Owen Zidar
1 year
1d. Restore the estate tax. Resetting the estate tax to inflation-adjusted parameters of 1997 would raise the rate to 55% and set the exemption threshold to around $1 million. Today, the rate is 40% and the threshold is $13 million (and twice that for couples).
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@omzidar
Owen Zidar
5 months
The extra tax revenue from additional capital accumulation is largely offset by larger costs of investment incentives.
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@omzidar
Owen Zidar
1 year
Want To Reduce Income Inequality? Lower The Barriers To Talented Immigrants via @forbes
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@omzidar
Owen Zidar
5 months
The paper provides 6 things: (1) a model of global investment behavior (2) new measures of the firm-level tax changes (3) reduced-form estimates of investment responses (4) estimated parameters (5) model quantification of long-run effects on capital and tax revenue (6) validation
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@omzidar
Owen Zidar
1 year
3. There are many more ways to reform the corporate tax (see e.g., @jasonfurman 's 2020 proposal for @hamiltonproj )
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@omzidar
Owen Zidar
1 year
1c. Returning to the rate and bracket structure, adjusted for inflation, to where it was in January 1997 would result in a married couple paying 36 cents instead of 24 cents on their 300,001st dollar. for those making half a million, marginal rates would increase to 39.6 from 35
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@omzidar
Owen Zidar
9 months
@DartmouthEcon It was a fantastic class - one of the best I have taken!
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@omzidar
Owen Zidar
1 year
@UnitedAirlines ⁩ this is the second replacement plane that hasn’t worked. A well-functioning airline would send a replacement plane that can fly. We waited for what’s going on 8 hours and still won’t get home — you should have checked that the replacement plane was working
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@omzidar
Owen Zidar
9 months
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@omzidar
Owen Zidar
1 year
See more here
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