Voting on Redistribution with Tax Evasion
AbstractThis paper analyzes voting on a linear income tax which is redistributed lump sum to the taxpayers. Individuals can evade taxes, which leads to penalties if evasion is detected. Since preferences satisfy neither single peakedness nor single crossing, an equilibrium may not exist. When it does exist, it may have interesting properties, in particular, the poor and the rich may form a coalition against the middle class.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 329.
Length: 21 p.
Date of creation: 2003
Date of revision:
Tax evasion; redistribution; voting;
Other versions of this item:
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-24 (All new papers)
- NEP-CDM-2003-02-24 (Collective Decision-Making)
- NEP-POL-2003-02-24 (Positive Political Economics)
- NEP-PUB-2003-02-24 (Public Finance)
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