For most parameter values, increased randomness about how much taxable income an auditor would assess leads to higher … reported income and more revenue, When reducing randomness is costly, optimality requires some randomness in assessed taxable … Income. Even if reducing randomness g costless, taxpayers may prefer some randomness when the increased revenue can be …

Knowing the elasticity of taxable income (ETI) is crucial for understanding the effects of taxation on taxpayer … behavior and consequently on tax revenues. Previous research finds that high-income individuals are the most sensitive to tax … policy changes. However, these individuals have more opportunities to defer income to future tax bases by altering the …

filed corporate income tax returns, they increase reported revenues, matching the third-party estimate when provided. Firms …

treatment collectors are more likely to target households with greater liquidity, income, awareness of taxpaying duties, and …

There is a large literature showing that the self employed underreport their income to tax authorities. In this paper …, we quantify the extent to which the self employed systematically underreport their income to U.S. household surveys. To … do so, we use the Engel curve describing the relationship between income and expenditures of wage and salary workers to …

This paper uses tax return data for the period 1951-1990 to investigate the rising share of adjusted gross income (AGI …) that is reported on very high income tax returns. We find that most of the increase in the share of AGI reported by high-income … taxpayers is due to an increase in reported income for the one quarter of one percent of taxpayers with the highest AGIs. The …

This paper uses a quasi-experimental design and a novel identification strategy to estimate the cost of filing income … taxes. First, using US income tax returns, I observe how taxpayers choose between itemizing deductions and claiming the … compliance cost of itemizing. I find that this cost increases with income, consistent with a higher opportunity cost of time for …

income literature. We also find that taxpayers bunch below the tax threshold, that observed responses are driven by changes …