This paper analyzes the effect of a change in lump-sum (private) income on the tax and expenditure decisions of a government constrained by taxpayers’ behavioral responses to the tax policy. Lump-sum changes of private income are generally characterized as pure income effects on taxpayers’ behavior, and usually considered in public finance theory as imposing no price effects on the economy. In ...

To combat their aversion to paying taxes, many taxpayers can exercise some control over their tax bill. U.S. tax law includes a rich menu of tax-incentivized behaviors, including favorable treatment of mortgage interest, retirement savings, and charitable giving, among many other provisions. Through undertaking these actions, or through remembering to claim credits or deductions due for actions...

This study investigated the economics of multisystemic therapy (MST) versus individual therapy (IT) using rearrest data from a 13.7-year follow-up (Schaeffer & Borduin, 2005) of a randomized clinical trial with serious juvenile offenders (Borduin et al., 1995). Two types of benefits of MST were evaluated: The value to taxpayers was derived from measures of criminal justice system expenses (e.g....

In the traditional deterrence approach, taxpayers were considered as purely self-interested rational agents (Allingham & Sandmo 1972), and consequently, compliance was enforced by measures such as audits and sanctions. In the late nineties, a new method of regulation was proposed. This approach, the responsive regulation (Ayres & Braithwaite 1992), integrated the various measures to ensure comp...

In this paper we give our perspective on the different paradigms that have shaped—and seem likely to shape in the future—research in the field of tax compliance behavior. These research paradigms include viewing tax evasion as a decision under risk made by a single taxpayer, as a social dilemma in which there is a tension between individual interests (e.g., cheating on one’s taxes) and collecti...

In recent years, Malaysian government has increasingly benefited from information technology to enhance their services, known as electronic government (egovernment). However, despite considerable investment, citizens’ adoption rate is still not as expected. Tax e-filing system is one of the critical e-government services, which assists taxpayers in filing their tax returns electronically each y...

The fiscal authorities use ICT for PIT compliance monitoring. But the formed electronic database is not available to detect income that is paid unofficially. In the result, the great part of individuals’ income is not taxed and the fiscal authorities cannot reveal it. For this purpose, it is necessary to connect the electronic databases of all tax agents. Especially it is important for the fisc...

The paper looks at the OECD domestic political economy associated to ongoing WTO farm negotiations, focusing on the OECD-based coalitions which could be helpful for WTO negotiators. Support from individual final consumers and taxpayers is far from being guaranteed–because consumers are spending less and less on food, and because taxpayers support, more or less willingly, non-trade concerns, suc...

This paper argues that widening income inequality contributes to the propensity to evade by both reducing the probability of detection and increasing compliance opportunity costs. Lower detection probability occurs as rising inequality gradually alters the composition of income from being employment-based (i.e., matchable) to investment-based (i.e., non-matchable). Greater economic polarization...

We consider the implications of ethical behaviour on the effect of a redistributive tax-transfer system. In choosing their labour supplies, individuals take into account whether their tax liabilities correspond to what they view as ethically acceptable. If tax liabilities are viewed as ethically acceptable, a taxpayer behaves ethically, does not distort her behaviour, and chooses to work as if ...