2025/05/29 by Sutirtha Bagchi · 2 citations
Business, Management and Accounting · Economics, Econometrics and Finance · Psychology · Social Sciences · #Compliance (psychology) #Corporate Taxation and Avoidance #Economics #Gender, Labor, and Family Dynamics #Gross income #Labour economics #Psychology #Public economics #State income tax #Tax reform #Taxation and Compliance Studies #Withholding tax
paper · doi:10.1086/733662
published in National Tax Journal 78(2), 327-367 (University of Chicago Press)
openalex publication_date 2025/05/29 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/25
This paper examines Act 32, which mandated the introduction of withholding for the local income tax for all employees and the consolidation of a fragmented collection system to one collector per county, effective January 1, 2012, for Pennsylvania local governments. Using a difference-in-differences research design, I find that the act resulted in increased collections of the local income tax by about 9 percent. Results examining the heterogeneous impact of Act 32 show that the effects were larger where fewer residents had been subject to withholding prior to the reform and in counties that experienced a greater consolidation of tax collection.