Tax administration responses to COVID-19: Administrative measures to facilitate withholding tax relief claims

How the Withholding Tax Affects U.s. Employees

Labor Market Responses to Payroll Tax Subsidies

In a high tax, high minimum wage labor market like France, payroll subsidies can reduce the minimum labor cost and expand employment opportunities for the low-skilled. Effects of these subsidies go beyond the directly affected. A particular concern is that high quality jobs may be replaced with lower quality ones, which hurts the employment opportunities of highly skilled workers and is costly ...

Optimal Tax Base with Administrative Fixed Costs

This note characterizes the optimal base for commodity taxation in the presence of administrative fixed costs varying across goods. For low tax rates, the optimal base only comprises commodities whose discouragement index is greater than the ratio of their administrative costs to the tax they yield. An illustration with UK data shows that a category of goods should be taxed only if the revenue ...

Tax Withholding and Tax Compliance: Evidence from a Framed Field Experiment

Although tax withholding is a central component of the US income tax system, there is a paucity of research that explores the relationship between tax withholding and subsequent tax reporting. Using a framed field experiment with working adults and deliberate framing, this study looks directly at this nexus. Briefly, we find interesting asymmetries related to tax position, in particular that ta...

Administrative Aspects of a Negative Income Tax

In recent years, there has been growing discontent with the nation's welfare programs. The resulting discussions have produced a broad range of criticisms. It is said that present programs do not reach all of the poor; that benefits are too small for many of those who receive them; that eligibility tests are demeaning and incentives for self-betterment are stifled, with the result.that too many...