Reducing Current Taxes to Raise Future Revenue
AbstractA government which raises taxes in the current period may induce workers to invest in finding ways to reduce their tax payments, and so may reduce the government's ability to raise revenue in the future. Therefore, a government that fears it may have to raise much revenue in the future may set taxes in the current period at a lower level than that which would maximize revenue, or that would maximize social welfare in that period.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 080914.
Length: 11 pages
Date of creation: Dec 2008
Date of revision:
Tax evasion; Intertemporal taxation;
Find related papers by JEL classification:
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-17 (All new papers)
- NEP-PBE-2009-01-17 (Public Economics)
- NEP-PUB-2009-01-17 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Giles & Patrick Caragata, 2001.
"The learning path of the hidden economy: the tax burden and tax evasion in New Zealand,"
Applied Economics, Taylor & Francis Journals,
Taylor & Francis Journals, vol. 33(14), pages 1857-1867.
- David E. A. Giles, & Patrick J. Caragata, 1999. "The Learning Path of the Hidden Economy: The Tax Burden and Tax Evasion in New Zealand," Econometrics Working Papers, Department of Economics, University of Victoria 9904, Department of Economics, University of Victoria.
- Svensson, Jakob, 1998. "Investment, property rights and political instability: Theory and evidence," European Economic Review, Elsevier, Elsevier, vol. 42(7), pages 1317-1341, July.
- Barro, Robert J., 1979.
"On the Determination of the Public Debt,"
3451400, Harvard University Department of Economics.
- Barro, Robert J, 1979. "On the Determination of the Public Debt," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(5), pages 940-71, October.
- Bruno Frey & Friedrich Schneider, 2000. "Informal and underground economy," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2000-04, Department of Economics, Johannes Kepler University Linz, Austria.
- Christina D. Romer & David H. Romer, 2007.
"Do Tax Cuts Starve the Beast: The Effect of Tax Changes on Government Spending,"
NBER Working Papers
13548, National Bureau of Economic Research, Inc.
- Christina D. Romer & David H. Romer, 2009. "Do Tax Cuts Starve the Beast? The Effect of Tax Changes on Government Spending," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 40(1 (Spring), pages 139-214.
- Joel Slemrod, 2007. "Cheating Ourselves: The Economics of Tax Evasion," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 21(1), pages 25-48, Winter.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jennifer dos Santos).
If references are entirely missing, you can add them using this form.