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Accuracy, Complexity, and the Income Tax

Kaplow, Louis - 2004

The complexity of the income tax is an unending source of complaint, and compliance costs are estimated to be very large. Yet most recognize that some degree of complexity is necessary if income is to be measured accurately. This article presents a framework for analyzing the value of greater...

Persistent link: https://www.econbiz.de/10014072382

Nonlinear Taxation of Income and Education in the Presence of Income-Misreporting

Bastani, Spencer; Gahvari, Firouz; Micheletto, Luca - 2022

We study the joint design of nonlinear income and education taxes when the government pursues redistributive objectives. A key feature of our setup is that the ability type of an agent can affect both the costs and benefits of acquiring education. Market remuneration of agents depends on both...

Persistent link: https://www.econbiz.de/10014243756

Tax Avoidance and the Optimal Design of Tax Law

Curry, Philip A.; Hill, Claire A.; Parisi, Francesco - 2014

Although most individuals recognize the necessity of taxation, few like to pay taxes. Governments face costs to collect taxes; people expend resources to legally avoid taxation. Such expenditure represents social waste, as it is a form of rent-seeking. Since there is a market for tax planning...

Persistent link: https://www.econbiz.de/10014208766

Optimal Income Taxation With Tax Avoidance and Endogenous Labor Supply

Casamatta, Georges - 2021

We determine the optimal income tax schedule when individuals both choose endogenously their labor supply and have the possibility of avoiding paying taxes. Considering a convex concealment cost function, we propose a formula for the optimal marginal tax rate, that generalizes the standard...

Persistent link: https://www.econbiz.de/10013229728

Taxpayer Self-Inspections, Audits, and Optimal Tax Administration : Evidence from China

Cui, Wei - 2021

reporting. Further, I argue that self-inspections highlight limits to the theory of optimal tax administration: where social …

Persistent link: https://www.econbiz.de/10013252230

Price Discrimination in Income Taxation

Alarie, Benjamin - 2012

Governments throughout the developed world worry incessantly about the implications of sophisticated tax planning for their tax revenues. And yet the same governments routinely stop short of doing all that they can legally do to combat tax avoidance. Why? One response is that a thick conception...

Persistent link: https://www.econbiz.de/10014184307

Optimal Income Taxation in the Presence of Tax Evasion : Expected Utility Versus Prospect Theory

Dhami, Sanjit - 2016

The predictions of expected utility theory (EUT) applied to tax evasion are flawed on two counts: (i) They are … the evidence. An emerging literature in behavioral economics, most notably based on prospect theory (PT), has shown that … taxation. As a benchmark for a successful theory, we require that it should explain, jointly, the facts on the tax rate, tax …

Persistent link: https://www.econbiz.de/10012707039

A Theoretical Analysis of Income Tax Evasion, Optimal Auditing, and Credibility in Developing Countries

Batabyal, Amitrajeet A. - 2010

We first construct a theoretical model of tax evasion in a stylized developing country in which all taxpayers have either high or low income. The key problem is that the high income taxpayers may under report their income. An individual income tax return can only be verified with an audit that...

Persistent link: https://www.econbiz.de/10013152474

Statutory, effective and optimal net tax schedules in Lithuania

Černiauskas, Nerijus; Jousten, Alain - 2020

Persistent link: https://www.econbiz.de/10012250774

Risk, self-employment and differential income taxation

Parker, Simon C. - In: The Manchester School 69 (2001) 1, pp. 1-15

Persistent link: https://www.econbiz.de/10001573208