Statutory incidence and sales tax compliance: Evidence from Wayfair

A-Tier
Journal: Journal of Public Economics
Year: 2022
Volume: 213
Issue: C

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies the compliance, pricing, and progressivity effects of changing statutory incidence. The Wayfair Supreme Court decision granted U.S. states new authority to shift the statutory incidence of taxation from consumers to online and out-of-state retailers, forcing supply-side remittance of the sales tax. With state-level data, we find this increased sales tax revenues by 7.9 percent, concentrated in states with stringent compliance standards. With barcode-level scanner data, we find evidence of full pass-through of the tax to consumers. Effects are progressive however, with the reforms increasing tax liabilities principally for higher-income households.

Technical Details

RePEc Handle
repec:eee:pubeco:v:213:y:2022:i:c:s0047272722001189
Journal Field
Public
Author Count
3
Added to Database
2026-01-25