The complexity of the individual income tax system can give rise to both under and overreporting of liability, thus creating a wedge between taxpayer perceptions of the price of public services and their actual cost, and potentially leading to budget misallocations and associated efficiency losses. This study uses theory and experiments to evaluate the effectiveness of taxpayer service programs...

This article shows that, contrary to the suggestion of some investment advisers, for an individual Canadian investor subject to personal income taxation, the after-tax yield on a discount bond is always higher than (or, at worst, equal to) the yield on a premium bond. * Of the Department of Economics, University of Alberta, Edmonton. We thank the editors of this journal and two anonymous review...

Previous studies have struggled to demonstrate that higher taxes deter business activity. We revisit this issue by estimating the effect of changes over time in cross-border differences in state tax conditions on the tendency for new establishments to favor one side of a state border over the other. Identification is enhanced by taking account of previously overlooked reciprocal agreements that...

OBJECT the level and evolution of income inequality among adults in Brazil between 2006 and 2012. OBJECTIVES to calculate the level of inequality, its trend over the years and the share of income growth appropriated by different social groups. METHODOLOGY We combined tax data from the Annual Personal Income Tax Returns (Declaração Anual de Ajuste do Imposto de Renda da Pessoa Física - DIRPF...

This article provides a brief history of tax and expenditure limitation initiatives in Oregon, along with a narrative of contemporary events. Largely as a consequence of the initiative’s increased role in the formulation of Oregon’s fiscal policy, state and local taxes paid by Oregon households declined from 7.4 percent of income in 1989 to 6.8 percent in 2003; state revenue, which is heavily d...

We construct a general equilibrium trade model of a two-class small open host or source country. When consumption tax revenue finances the provision of a public good, marginal migration reduces social welfare in the source country and raises it in the host. When consumption tax revenue is equally distributed among domestic households in each country, then migration has an ambiguous impact on so...

The paper studies the interaction between public and private inputs in a two-stage education framework (K-12 and tertiary education). We …nd that an increase in the overall educational public spending crowds out the total level of private contributions and increases the share of total private resources that households devote to K-12 education. Given a …xed level of public funding, a higher shar...

Higher welfare support levels diminish the relative value of education according to standard economic theory. However, studies based on the negative income tax experimentshavefound that higher welfare support levels increase participation in the educational system. This study examines a nonexperimental source of data to determine the effect of higher expected state-level welfare benefits on hig...