This paper presents an analysis of the extent to which tax planning affects the level of the inheritance tax rate that is perceived to be fair. In a factorial survey conducted in Germany, tax planning was found to increase the fair tax rate by approximately 4 percentage points. The fair tax rate...

Im Vorfeld der Bundestagswahl haben die Parteien ihre Pläne zum Einkommensteuertarif und zur Besteuerung der Kapitaleinkünfte vorgelegt. Während die Regierungsparteien Entlastungen im mittleren und höheren Einkommensbereich über einen Abbau der kalten Progression vorschlagen, wollen die...

We examine the role of tax incentives, tax awareness, and complexity in tax evasion. We observe a specific type of tax evasion among business owners in Swedish administrative panel data, after the tax authority has approved all tax returns. For the period 2006-2009, approximately 5% of tax...

Relative consumption effects or status concerns that feature jealousy (in the sense of Dupor and Liu, AER 2003) boost consumption expenditure. If consumption is financed by labour income, such status considerations increase labour supply and, hence, the tax base. A higher taxable income, in...

Die CDU/CSU schlägt in ihrem Wahlprogramm unter dem Stichwort Familiensplitting vor, das Kindergeld um 35 Euro pro Monat zu erhöhen und den Kinderfreibetrag auf die Höhe des Grundfreibetrags für Erwachsene anzuheben. Dies würde nach Berechnung des DIW Berlin Familien mit Kindern...

The objective of this paper is to study if taxpayers behave in a loss averse manner when filing their tax returns. This is important for tax design but also for understanding human behavior in general. The predictions of prospect theory can be contrasted to those of expected utility theory. We...

A strictly risk-averse individual with an exogenous gross income in period one can acquire human capital in the same period and evade taxes. Period-two income rises with educational investments in period one and can also be hidden from tax authorities. It is shown that a greater tax...

Für einen internationalen Vergleich der Steuerbelastung ist eine differenzierte Betrachtung der effektiven steuerlichen Belastung nach Gruppen von Steuerpflichtigen von Interesse. Auf Basis des europäischen Mikrosimulationsmodells EUROMOD zeigt diese Studie, dass die effektive Belastung der...

This paper examines the interaction between minimum wage legislation and tax evasion by employed labor. I develop a model in which firms and workers may agree to report less than the true amount of earnings to the fiscal authorities. I show that introducing a minimum wage creates a spike in the...

Motivated by the observation that access to evasion opportunities is distributed heterogeneously across the labor market, this paper examines the extent to which labor supply elasticities with respect to tax rates depend on such evasion opportunities. We first set up a theoretical model to...