Cebula, Richard and Coombs, Christopher (2008): Do Government-Spending-Induced Deficits Lower Tax Compliance? Published in: Tax Notes , Vol. 125, No. 9 (30 November 2009): pp. 1007-1012.
Preview |
PDF
MPRA_paper_50121.pdf Download (784kB) | Preview |
Abstract
This study empirically investigates the deficit/tax-compliance hypothesis that higher federal budget deficits resulting from increased government spending lead to decreased federal personal income tax compliance in the U.S. The study period runs from 1960-2001 and adopts annual data. After allowing for a variety of factors that have been found previously to influence tax compliance/evasion, it is found that income tax evasion is an increasing function of budget deficits resulting from federal government spending increases.
Item Type: | MPRA Paper |
---|---|
Original Title: | Do Government-Spending-Induced Deficits Lower Tax Compliance? |
English Title: | Do Government-Spending-Induced Deficits Lowe Tax Compliance? |
Language: | English |
Keywords: | personal income tax compliance; tax evasion; budget deficits; IRS audit rates; IRS penalties; unemployment rate |
Subjects: | H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H26 - Tax Evasion and Avoidance H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods H - Public Economics > H6 - National Budget, Deficit, and Debt > H62 - Deficit ; Surplus |
Item ID: | 50121 |
Depositing User: | Richard Cebula |
Date Deposited: | 24 Sep 2013 01:33 |
Last Modified: | 28 Sep 2019 04:44 |
References: | Alm, J., Jackson, B., & McKee, M., 1992. "Institutional Uncertainty and Taxpayer Compliance," American Economic Review, 82(4), 1018-1026. Alm, J., & Yunus, M., 2009. “Spatiality and Persistence in U.S. Individual Income Tax Compliance,” National Tax Journal, 62(1), 101-124. Baldry, J.C., 1987. “Income Tax Evasion and the Tax Schedule: Some Experimental Results,”Public Finance/Finances Publiques, 42(2), 357-383. Caballe, J., & Panades, J., 1997. “Tax Evasion and Economic Growth,” Public Finance/Finances Publiques, 52(2), 318-340. Cagan, P., 1958. "The Demand for Currency Relative to the Total Money Supply," Journal of Political Economy, 66(2), 303-328. Carroll, R., Holtz-Eakin, D., Rider, M., & Rosen, H., 1998. “Income Taxes and Entrepreneurs’ Use of Labor,” N.B.E.R. Working Paper 6578. Carroll, R., Holtz-Eakin, D., Rider, M., & Rosen, H., 2000. “Personal Income Taxes and the Growth of Small Firms,” N.B.E.R. Working Paper 7980. Cebula, R.J., 2004. “Income Tax Evasion Revisited: The Impact of Interest Rate Yields on Tax-Free Municipal Bonds,” Southern Economic Journal, 71 (2), 418-423. Clotfelter, C.T., 1983. "Tax Evasion and Tax Rates: An Analysis of Individual Returns," Review of Economics and Statistics, 65 (2), 363-373. Connelly, R., 2004. “A Note on Income Tax Evasion,” Atlantic Economic Journal, 32(2), 157. Council of Economic Advisors, 2010. Economic Report of the President, 2010. U.S. Government Printing Office: Washington,, D.C. Erard, B., & Feinstein, J.S., 1994. "The Role of Moral Sentiments and Audit Perceptions in Tax Compliance," Public Finance/Finances Publiques, 49(1), 70-89. Feige, E.L., 1994. "The Underground Economy and the Currency Enigma," Public Finance/Finances Publiques, 49(1), 119-136. Gahramanov, E., 2009. “The Theoretical Analysis of Income Tax Evasion Revisited,” Economic Issues, 14 (1), 35-41. Government Accounting Office, 1996. Individual Audit Rates at http://www.gao.gov/archive/1996/gg96091.pdf IRS, 1976-2009. Annual Report of the Commissioner and Chief Counsel of the Internal Revenue Service, Washington, D.C., U.S. Government Printing Office. IRS, 2010. Aggregate Unreported Income Statistics at http://www.irs.gov/taxstats/article/0,,id=175807,00.html IRS, 2009A. Itemized Deductions at http://www.irs.gov/taxstats/article/0,,id=175812,00.html IRS, 2009B. Tax Rates at http://www.irs.gov/pub/irs-soi/02inpetr.pdf Pestieau, P., Possen, U. & Slutsky, S., 1994. "Optimal Differential Taxes and Penalties," Public Finance/Finances Publiques, 49(1), 15-27. Pyle, D., 1989. Tax Evasion and the Black Economy. St. Martin's Press: New York. Surwiecki, J., 2010. Soak the Very, Very Rich at http://www.newyorker.com/talk/financial/2010/08/.../1000816ta_talk_surowiecki Tanzi, V., 1982. The Underground Economy in the United States and Abroad. Lexington Books: Lexington, MA. The Tax Foundation, 2010. Summary of Latest Federal Individual Income Tax Data at http://www.taxfoundation.org/news/show/250.html U.S. Census Bureau, 1994. Statistical Abstract of the United States, 1994. U.S. Government Printing Office: Washington, D.C. U.S. Census Bureau, 1998. Statistical Abstract of the United States, 1998. U.S. Government Printing Office: Washington, D.C. U.S. Census Bureau, 1999. Statistical Abstract of the United States, 1999. U.S. Government Printing Office: Washington, D.C. U.S. Census Bureau, 2001. Statistical Abstract of the United States, 2001. U.S. Government Printing Office: Washington, D.C. U.S. Census Bureau, 2009. Statistical Abstract of the United States, 2009. U.S. Government Printing Office: Washington, D.C. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/50121 |