With sufficiently well-reasoned and principled reform of tax systems, it is possible to achieve practical simplicity and a reduction in perverse incentives to a far greater degree than under any of the "flat-rate" proposals being advanced, without significant sacrifice of progressivity. But it...

The present paper considers the question of just how redistributive it is possible to make consumption taxes, by using differential rates and exemptions.

Tax compliance is modelled as a Bayesian Nash equilibrium in a costly state verification game with imperfect auditing. Neither the tax payer nor the auditor can measure the tax payer's true liability precisely: they observe independent noisy signals.

Tax models come in all shapes and sizes, depending on the nature of the policy issues examined. The policy questions may relate to specific problems, concerning perhaps the revenue implications of a particular tax, or they may involve an extensive analysis of the cost and redistributice effects...

Incremental tax credits have been used as a tool in order to stimulate R&D expenditures. This paper studies the dynamic response of firms through a model of investment.

Using bank-level data for the period 1990–2005, we investigate to what extent European banks are able to shift their tax-burden forward. We examine the effects of corporate income tax (CIT) and value added tax (VAT) on pre-tax profits and their components, and find that both are shifted...