This paper examines the impact of marginal tax rates, which incorporate the earned income tax credit (EITC) as it existed in 1988, on the reporting of income by low-income taxpayers. We generally find that misreported income is not affected by tax rates, except for proprietors. Negative marginal...

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 disposition...