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What Is an "Optimal'"Tax System?

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  • Alm, James

Abstract

Argues that previous attempts to derive an "optimal tax system" are largely irrelevant to practical tax design, because they typically ignore a range of considerations reflecting fiscal and societal institutions that are essential elements in the normative and positive analysis of taxation.

Suggested Citation

  • Alm, James, 1996. "What Is an "Optimal'"Tax System?," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(1), pages 117-133, March.
    • Handle: RePEc:ntj:journl:v:49:y:1996:i:1:p:117-33
    DOI: 10.1086/NTJ41789190
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    References listed on IDEAS

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    1. Slemrod, Joel & Yitzhaki, Shlomo, 1987. " The Optimal Size of a Tax Collection Agency," Scandinavian Journal of Economics, Wiley Blackwell, vol. 89(2), pages 183-192.
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    3. Kesselman, Jonathan R., 1989. "Income tax evasion : An intersectoral analysis," Journal of Public Economics, Elsevier, vol. 38(2), pages 137-182, March.
    4. Alm, James & Bahl, Roy & Murray, Matthew N., 1993. "Audit selection and income tax underreporting in the tax compliance game," Journal of Development Economics, Elsevier, vol. 42(1), pages 1-33, October.
    5. Blumenthal, Marsha & Slemrod, Joel, 1992. "The Compliance Cost of the U.S. Individual Income Tax System: A Second Look After Tax Reform," National Tax Journal, National Tax Association;National Tax Journal, vol. 45(2), pages 185-202, June.
    6. Kaplow, Louis, 1990. "Optimal taxation with costly enforcement and evasion," Journal of Public Economics, Elsevier, vol. 43(2), pages 221-236, November.
    7. Pitt, Mark M & Slemrod, Joel, 1989. "The Compliance Cost of Itemizing Deductions: Evidence from Individual Tax Returns," American Economic Review, American Economic Association, vol. 79(5), pages 1224-1232, December.
    8. Erard, Brian, 1993. "Taxation with representation : An analysis of the role of tax practitioners in tax compliance," Journal of Public Economics, Elsevier, vol. 52(2), pages 163-197, September.
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    11. Kaplow, Louis, 1989. "Horizontal Equity: Measures in Search of a Principle," National Tax Journal, National Tax Association;National Tax Journal, vol. 42(2), pages 139-154, June.
    12. Clotfelter, Charles T, 1983. "Tax Evasion and Tax Rates: An Analysis of Individual Returns," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 363-373, August.
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    16. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550.
    17. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    18. Wilson, John Douglas, 1989. "On the Optimal Tax Base for Commodity Taxation," American Economic Review, American Economic Association, vol. 79(5), pages 1196-1206, December.
    19. J. Pope & R. Fayle, 1990. "The Compliance Costs Personal Income Taxation in Australia 1968/87: Empirical results," Economics Discussion / Working Papers 90-06, The University of Western Australia, Department of Economics.
    20. Stern, Nicholas, 1982. "Optimum income taxation with discrete populations," Journal of Public Economics, Elsevier, vol. 17(2), pages 131-133, March.
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    Cited by:

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    2. James Alm, 2018. "What are the Costs of a New Tax Administration? The Case of a Personal Income Tax in Kuwait," Working Papers 1804, Tulane University, Department of Economics.
    3. Brian E. Whitacre & Dylan L. Johnston & David W. Shideler & Notie H. Lansford, 2020. "The influence of oil and natural gas employment on local retail spending: evidence from Oklahoma panel data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 133-157, February.
    4. James Alm, 2018. "Is the Haig‐Simons Standard Dead? The Uneasy Case for a Comprehensive Income Tax," National Tax Journal, National Tax Association;National Tax Journal, vol. 71(2), pages 379-398, June.
    5. Engen, Eric M. & Skinner, Jonathan, 1996. "Taxation and Economic Growth," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(4), pages 617-642, December.
    6. Víctor Mauricio Castaneda Rodríguez & Jairo Orlando Villabona-Robayo, 2020. "El impuesto sobre la renta empresarial en Colombia: su tasa efectiva y su relación con la inversión," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 39(70), pages 183-205, July.
    7. Godwin Dube & Daniela Casale, 2019. "Informal sector taxes and equity: Evidence from presumptive taxation in Zimbabwe," Development Policy Review, Overseas Development Institute, vol. 37(1), pages 47-66, January.
    8. Kaplow, Louis, 1996. "How Tax Complexity and Enforcement Affect the Equity and Efficiency of the Income Tax," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(1), pages 135-150, March.
    9. Martin Besfamille & Cecilia Parlatore Siritto, 2009. "Modernization of Tax Administrations and Optimal Fiscal Policies," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(6), pages 897-926, December.
    10. Abel Gwaindepi, 2022. "Fiscal capacity in ‘‘responsible government’’ colonies: the Cape Colony in comparative perspective, c. 1865–1910 [The spread of empire: Clio and the measurement of colonial borrowing costs]," European Review of Economic History, European Historical Economics Society, vol. 26(3), pages 340-369.
    11. Filiz GİRAY & Gamze ÇİMEN, 2022. "Tax Optimality in Turkey: An Analysis for Total Tax Revenues," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 8(2), pages 63-77, 06-2022.
    12. Goode, Richard, 1997. "The National Tax Journal in 1948-50 and 1994-96," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(4), pages 707-718, December.
    13. Olga Yuryevna Bakaeva* & Eugeniy Gennadyevich Belikov & Elena Vacheslavovna Pokachalova & Vasily Valeryevich Popov & Margarita Byashirovna Razgildieva, 2018. "Implementing the Principles of the Social State in Tax Law within the Context of the Digital Economy," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 61-66:3.

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