We propose a model consistent with two observations. First, the tax rates adopted by different countries are generally … their growth performance. In our model, the effects of taxation on growth are highly non-linear. Low or moderate tax rates … have a very small impact on long-run growth rates. But as tax rates rise, their negative impact on growth rises …

Several recent analyses have suggested that the revenue-maximizing corporate tax rate resides in the low-30's. We … challenge this result by re-examining this relationship using a new compilation of changes in corporate tax base definitions for … OECD countries between 1980 and 2004. By considering tax base changes in addition to tax rate changes, we can address the …

Much criticism of the income tax involves administration: the enormous complexity of the system is responsible for … large compliance costs, public and private, and the tax gap is large despite substantial resources devoted to enforcement … fundamental restructuring of the tax system. But evaluation of such changes is difficult because the underlying problems have not …

In this paper we analyze income tax design in a two member household labor supply model where time spent on consumption … model to numerically investigate the welfare implications of different tax structures. In sharp contrast to existing … existing individual-household tax unit literature …

We characterize and demonstrate a solution method for an optimal commodity (sales) tax problem consisting of multiple … individuals. We calibrate our model to the United States and test the effects of a differentiated optimal commodity tax versus a … flat tax and the effect of exempting a broad class of goods (services) from commodity taxation. We find that only a …

When Arthur Laffer or other "supply side advocates" plot total tax revenue as a function of a particular tax rate, he …. Since a given revenue can be obtained with either of two tax rates, government would minimize total burden by choosing the … lower rate of the normal range. A brief literature review indicates that tax rates on the prohibitive range in theoretical …

In his Fisher-Schultz Lecture, Martin Feldstein examined the effects of non-neutral tax rules on business investment by … existing U.S. tax rules, substantially discouraged investment in the past 15 years." In a detailed examination of Feldstein …'s Effective Tax Rate model and a less extensive review of his other formulations (Neoclassical and Return-Over-Cost models), a …

In estimating the effects of capital income taxation, different studies measure different effective tax rates. This … paper categorizes effective tax rate estimates into six basic types, and discusses the usefulness of each. For marginal … effective tax rates, some studies estimate the additional taxes associated with a marginal increase in the inflation and …

income. Capital mobility for tax evasion eliminates distortions in the intertemporal allocation of consumption, but … the welfare effects of capital movements for the purpose tax evasion …

This paper attempts to estimate the size and distribution of tax evasion in rich countries. We combine random audits …—the key source used to study tax evasion so far—with new micro-data leaked from large offshore financial institutions … Denmark. We find that tax evasion rises sharply with wealth, a phenomenon random audits fail to capture. On average about 3 …