MEASURING AGGREGATE BUSINESS INCOME WITH TAX DATA

Measuring and Analyzing Income Distribution and Income Inequality in Hungary based on Data from Personal Income Tax Returns

This study surveys various views on income distribution and income inequality and presents alternative approaches to and analytical methods of measuring income inequality. In contrast to traditional income distribution analyses, the author examines the development of income distribution and income inequality for a period between 1996 and 2004, following the change in the regime, based on person...

Income Tax Buyouts and Income Tax Evasion

A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected tax revenues. This will be the case if (1) the audit probability is constant and the penalty for eva...

The Income Tax Compliance Cost of Big Business

income taxes is approximately $1.565 million, implying an aggregate annual compliance cost of over $2 billion. As a fraction of revenue raised, these compliance costs are lower than estimates that have been made for the individual income tax. The cost-to-revenue ratio is higher for state corporate tax systems than it is for the federal tax system, presumably reflecting the nonuniformity of stat...

Measuring Cross-Category Price Effects with Aggregate Store Data

O objective is to understand the cross-category effects of marketing activities using aggregate store-level scanner data. For this, we provide a framework derived from household utility maximizing behavior which assumes that a household chooses the “bundle” of products with the highest utility. We use a second-order Taylor series approximation to an arbitrary utility function to represent bundl...

Fixing the Income Tax with the Fair Tax