The existence of a private cost borne by audited taxpayers affects the tax enforcement policy. This is so because tax auditors will face now two sources of uncertainty, namely, the typical one associated with taxpayers' income and that associated with the taxpayers' idiosyncratic attitude...

The tax system combining a flat tax rate with an exempt minimum income has been largely debated in recent years. Detractors argue that tax systems with these characteristics are less progressive and, hence, they tend to lower the degree of redistribution. In contrast, supporters brandish its...