The paper analyzes the administrative Schedule C self-employment taxable income data
and estimates compensated and uncompensated elasticity of self-employment taxable income
of the United States. The paper finds that compensated elasticity of self-employment taxable
income ranges from 0.928 to 1.598, suggesting that the calculated average deadweight loss of
income tax per $1,000 self-employment income ranges from $9 to $15, and from 7% to 12%
of self-employment income tax revenue. The uncompensated elasticity of self-employment
taxable income ranges from 0.953 to 2.810. This responsiveness of self-employment income
and average deadweight loss reflect short-term responses of static taxable income rather than
long-term responses. However, the empirical analysis in this paper suggests that the selfemployment
taxable income is more responsive to the changes in tax rates than the taxable
income of wage workers.