Although there is already a variety of papers analyzing tax evasion decisions, only little focus is put on tax evasion of gains and losses. As taxpayers can evade taxes by either underreporting their income or by overdeducting expenses, we study whether there is a significant difference if...

We conduct a framed field experiment with 245 employed persons (no students) as subjects and a real tax, which is levied on the subjects' income from working in our real effort task. In our first three treatments, the net wage is constant but gross wages are subject to different constant...

We conduct a framed field experiment with 245 employed persons (no students) as subjects and a real tax, which is levied on the subjects' income from working in our real effort task. In our first three treatments, the net wage is constant but gross wages are subject to different constant...

Tax evasion costs governments worldwide trillions of U.S. dollars. Thus, a comprehensive understanding of tax evasion behavior is needed to ensure that tax evasion is combatted effectively. Using different controlled and incentivized experiments, we analyze whether taxpayers are more willing to...

We present a simple model with tax biases that shows that tax perception depends on (1) the tax rate, (2) tax salience, and (3) tax experience. To test our model predictions, we first draw on the results of Fochmann et al. (2013) and show that tax misperceptions are lower with a higher tax rate....

We provide evidence that subsidy types that are identical in monetary terms differ in their behavioral responses and consequently in their effectiveness. In particular, we observe that investments into a subsidized asset are higher under tax credit than under grant. Both subsidy types are...