Redistribution through tax evasion
AbstractUsing a simple model of income redistribution, we show that the government may use tax evasion as a way to redistribute income from the non- evaders to evaders. This will result then to a negative association between income inequality and per capita transfers and inefficiently high taxes.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 34803.
Date of creation: 16 Nov 2011
Date of revision:
redistribution; inequality; tax evasion;
Find related papers by JEL classification:
- H10 - Public Economics - - Structure and Scope of Government - - - General
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-11-28 (Accounting & Auditing)
- NEP-ALL-2011-11-28 (All new papers)
- NEP-IUE-2011-11-28 (Informal & Underground Economics)
- NEP-PBE-2011-11-28 (Public Economics)
- NEP-PUB-2011-11-28 (Public Finance)
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