Work

Paying income tax after a natural disaster

Year: 2024

Type: article

Abstract: We investigate the effects of a climatic shock on individuals’ tax deduction and tax payable patterns, alongside their income dynamics. Using individual-level annual tax return data and exploiting the 2010–2011 Queensland Floods in Australia as a natural experiment, we find that the floods affect different income groups differently. They also lead to persistent higher tax deductions for high-income taxpayers. For the population at large, we detect spikes in certain tax deduction items that lasted longer than the income shock. Overall, our findings uncover discernible changes in tax deduction patterns following floods.

Source: Journal of Environmental Economics and Management

DOI: 10.1016/j.jeem.2024.103044

Authors: Merve Kucuk, Mehmet Ulubasoglu

Institutions: German Institute for Economic Research, Deakin University

Language: English

Topic: Economic and Fiscal Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: No poverty, Climate action

Open Access status: hybrid

Estimated APC paid: $3,510