Title: Does More Progressive Tax Make Tax Discipline Weaker
Abstract:This paper investigates the relationship between the disparity in base and collection. I address the collection problem with traditional industrial organization approach. Thus, I model the tax minimiz...This paper investigates the relationship between the disparity in base and collection. I address the collection problem with traditional industrial organization approach. Thus, I model the tax minimization industry where the supplier helps taxpayers to avoid their liability. I find that lower income inequality as well as a less progressive code may result in a smaller number of payers committing to their duties. Finally, I question the reduction in the highest rate as a policy directed at the improvement of discipline.Read More
Publication Year: 2005
Publication Date: 2005-02-01
Language: en
Type: preprint
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