Using data from the Michigan Panel Study of Income Dynamics and from Federal Estate Tax returns, this paper investigates the labor disincentive caused by inheritance. The results are of interest for several reasons. Whether or not inheritances are a strong labor disincentive figures prominently...

This paper investigates the role of governance, in particular bribes to tax officials, in shaping business tax compliance behavior in transition economies. The empirical results show that business noncompliance rises with the frequency of tax related bribes. More specifically, the findings from...

Using a matched sample of federal estate and personal income tax returns, we examine how the receipt of an inheritance affects an individual's decision to become an entrepreneur and the amount of capital employed in the new enterprise. These findings are consistent with the presence of liquidity...

Corporate income is taxed twice, once at the entity level and then taxed once again at the shareholder level. In addition, the corporate tax system favors debt over equity financing of capital expenditures; corporations are able to deduct interest on borrowed funds, unlike the return to equity....

An extensive body of the literature has examined the determinants of individual giving to charity. Indeed, the role of the personal income tax continues to attract considerable attention. In contrast, very few have explored the effects of taxes on corporate giving. This article represents an...

This paper investigates the role of managerial preferences in shaping corporate income tax evasion. Using noncompliance with the personal income tax as a measure of taste for evasion, the empirical results from a sample of corporate income tax returns show that managerial preferences play an...

In this article, we empirically gauge the government revenue-expenditure nexus for a state. Employing Granger-causality and vector autoregression techniques, our stylized results indicate that state revenues cause state expenditures. Furthermore, we find that federal grants are not a significant...