Charitable bequests are an important source of philanthropic support. Unlike bequests to children, which can be taxed at a maximum statutory rate of 0.55, such transfers are exempt from estate taxation. Thus, by lowering the price of charitable giving, the estate tax may influence the...

This paper provides insight into the attributes of wage-earning households that participate in tax-deferred retirement savings plans. Examining data from federal tax returns, we find that approximately 52 percent of individuals and 55 percent of households participated in a retirement savings...

This paper traces the implications of replacing the estate tax with a basis carry over regime under the income tax. Such changes are likely to level the playing field and generally extend uniform tax treatment to gifts and bequests, spousal bequests and bequests to children, gains realized...

Examines the impact of marginal tax rates, which incorporate the earned income tax credit as it existed in 1988, on the reporting of income by low-level taxpayers. Concludes that the amount of income underreported does not appear to be affected by the relatively high marginal tax rates which...

Researchers often rely on self–reported tax data to gauge the effect of taxes on economic activity. These data, however, are subject to measurement errors in the presence of tax evasion. We find evidence that estimated income and tax price elasticities are biased due to errors–in variables...

Estate Tax Reforms over the past quarter of a century reflect a number of objectives. These include harmonization of estate and gift taxes, reductions in tax burdens, easing liquidity constraints, and simplifying compliance and tax administration. As a result of these changes, many taxpayers...

This paper examines the compliance pattern of small businesses, using pooled 1985 and 1988 Taxpayer Compliance Measurement Program (TCMP) data. Specifically, we focus on the voluntary reporting compliance of income from proprietorship, farm, and rental real estate activities. We find that...

This paper explores the behavioral response of taxable bequests to estate taxation. To gauge its effects, the estate tax is converted to an equivalent income tax. This highlights the importance of expected rates of return, and also makes it possible to compare effective tax rates on saving over...

This paper explores the implications of evaluating income tax preferences, or tax expenditures, under a consumption tax baseline. More specifically, it examines the conceptual differences between income and consumption tax baselines, and employs an X-tax prototype of a consumption tax to gauge...

This paper summarizes the tax treatment of wealth transfers, examines the profile of taxpayers, and presents a review of some of the empirical evidence on the effects of estate, gift, and income taxes on the behavior of the wealthy.