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Abstract : This paper evaluates the taxable income elasticities of high-income households. We focus on a 2013 tax reform creating a unique framework that allows to control for position in the income distribution. The reform treats differently households based on income but also family composition. The analysis is conducted for France with a recently released big administrative panel dataset. I estimate with a triple-difference regression the change in taxable income depending on the group an high-income household belongs to: the untreated (no effect), the ones facing only a change in their disposable income (pure income effect), and those facing a change in marginal tax rate and disposable income (income and substitution effect). Contrasting with the established literature, I show the existence of an income effect.
