Tax Evasion and Capital Gains Taxation
AbstractThis paper uses time-series data to investigate how changes in capital gains tax rates affect taxpayer compliance. It finds that a one percent increase in the marginal tax rate reduces voluntary compliance by between one half and one percent. These results confirm the findings of previous studies based on individual household data. They also suggest that at least one quarter of the observed capital gain realization response to changes in marginal tax rates is due to changes in reporting behavior, rather than portfolio behavior.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2119.
Date of creation: Oct 1987
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in: The Effects of Taxation on Capital Accumulation, pages 223-258
National Bureau of Economic Research, Inc.
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- 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 363-73, August.
- Lawrence B. Lindsey, 1987. "Capital Gains Rates, Realizations, and Revenues," NBER Chapters, in: The Effects of Taxation on Capital Accumulation, pages 69-100 National Bureau of Economic Research, Inc.
- Slemrod, Joel B, 1985. "An Empirical Test for Tax Evasion," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 232-38, May.
- Martin Feldstein & Joel Slemrod & Shlomo Yitzhaki, 1981.
"The Effects of Taxation on the Selling of Corporate Stock and the Realization of Capital Gains,"
NBER Working Papers
0250, National Bureau of Economic Research, Inc.
- Feldstein, Martin & Slemrod, Joel & Yitzhaki, Shlomo, 1980. "The Effects of Taxation on the Selling of Corporate Stock and the Realization of Capital Gains," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 777-91, June.
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