This paper provides evidence of efficient taxation of groups with heterogeneous levels of ‘tax morale’. We set up an … optimal income tax model where high tax morale implies a high subjective cost of evading taxes. The model predicts that ‘nice … guys finish last’: groups with higher tax morale will be taxed more heavily, simply because taxing them is less costly …

The introduction of a flat tax is supposed to have several advantages. Administration and compliance costs are reduced …, as well as incentives for tax evasion. Furthermore, positive employment and growth effects are expected. Despite these … advantages, a flat rate tax is not very popular in most Western European countries. The most important objection against a flat …

for all countries of the European Union. We illustrate our novel methodology analysing a hypothetical tax reform for … Belgium. We then evaluate real tax reforms in Italy and Poland. Our approach takes into account the feedback effects resulting … from adjustments in the labor market and the economy-wide reaction to the tax policy changes. Our results suggest that …

extent of such behavioral responses for the Earned Income Tax Credit (EITC) in the US. We exploit the fact that US states can … set top-up rates, which means that at a given point in time, workers with the same income receive different tax refunds in … bunching of self-employed tax filers at the first kink point of the tax schedule. While we document a strong relationship up …

We present the first randomized survey experiment in the context of tax compliance to assess the role of social norms … and reciprocity for intrinsic tax morale. We find that participants in a social-norm treatment have lower tax morale … relative to a control group while participants in a reciprocity treatment have significantly higher tax morale than those in …

We present the first randomized survey experiment in the context of tax compliance to assess the role of social norms … and reciprocity for intrinsic tax morale. We find that participants in a social-norm treatment have lower tax morale … relative to a control group while participants in a reciprocity treatment have significantly higher tax morale than those in …

European countries have the world's most redistributive tax and transfer systems. While they have been well equipped to … across countries: changes in the tax and transfer system have particularly hit the young and the losers of occupational … findings suggest that horizontal inequality is a dimension which policy makers should take into account when reforming tax and …

How do different components of the tax and transfer systems affect disposable income inequality? This paper explores … the redistributive effects of different tax benefit instruments in the enlarged EU based on two approaches. Inequality …