IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v72y1990i4p603-13.html
   My bibliography  Save this article

Tax Structure and Tax Compliance

Author

Listed:
  • Alm, James
  • Bahl, Roy
  • Murray, Matthew N

Abstract

A model of individual tax compliance behavior, including evasion and avoidance, is developed and estimated. The model recognizes the importance of marginal income tax rates, payroll tax contributions and benefits, and the probability of detection and the penalty on unpaid taxes. Share equations for avoidance, evasion, and reported income are estimated using individual-level data. The estimation results indicate that the tax base rises with higher benefits for payroll tax contributions and falls with higher marginal tax rates; the base also falls with more severe penalties and more certain detection of evasion as individuals substitute towards avoidance income. Copyright 1990 by MIT Press.

Suggested Citation

  • Alm, James & Bahl, Roy & Murray, Matthew N, 1990. "Tax Structure and Tax Compliance," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 603-613, November.
  • Handle: RePEc:tpr:restat:v:72:y:1990:i:4:p:603-13
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0034-6535%28199011%2972%3A4%3C603%3ATSATC%3E2.0.CO%3B2-1&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:ind:nipfwp:13 is not listed on IDEAS
    2. James Alm, 2012. "Measuring, explaining, and controlling tax evasion: lessons from theory, experiments, and field studies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 54-77, February.
    3. Branko Milanovic & Sean Higgins & Nora Lustig & Whitney Ruble & Timothy M. Smeeding, 2016. "Comparing the Incidence of Taxes and Social Spending in Brazil and the United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62, pages 22-46, August.
    4. Amit Nigam, 2016. "A Conceptual And Factorial Review Of The Determinants Of Income Tax Compliance," Working papers 2016-09-09, Voice of Research.
    5. Bayer, Ralph-C & Sutter, Matthias, 2009. "The excess burden of tax evasion--An experimental detection-concealment contest," European Economic Review, Elsevier, vol. 53(5), pages 527-543, July.
    6. Kim, Chung K. & Evans III, John H. & Moser, Donald V., 2005. "Economic and equity effects on tax reporting decisions," Accounting, Organizations and Society, Elsevier, vol. 30(7-8), pages 609-625.
    7. Mirco, Tonin, 2006. "The Effects of the Minimum Wage in an Economy with Tax Evasion," Seminar Papers 747, Stockholm University, Institute for International Economic Studies.
    8. Mukhtar Ali & H. Cecil & James Knoblett, 2001. "The effects of tax rates and enforcement policies on taxpayer compliance: A study of self-employed taxpayers," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(2), pages 186-202, June.
    9. Tonin, Mirco, 2007. "Minimum wage and tax evasion: theory," Discussion Paper Series In Economics And Econometrics 0711, Economics Division, School of Social Sciences, University of Southampton.
    10. James Alm, 2017. "Is Economics Useful for Public Policy?," Working Papers 1702, Tulane University, Department of Economics.
    11. Sean Higgins, Nora Lustig, Whitney Ruble, and Timothy Smeeding, 2014. "Comparing the Incidence of Taxes and Social Spending in Brazil and the United States - Working Paper 360," Working Papers 360, Center for Global Development.
    12. Hungerman, Daniel M., 2014. "Public goods, hidden income, and tax evasion: Some nonstandard results from the warm-glow model," Journal of Development Economics, Elsevier, vol. 109(C), pages 188-202.
    13. repec:npf:wpaper:13 is not listed on IDEAS
    14. Sour, Laura, 2004. "An Economic Model of Tax Compliance with Individual Morality and Group Conformity," MPRA Paper 50334, University Library of Munich, Germany.
    15. Das-Gupta, Arindam, 2004. "Economic theory of tax compliance with special reference to tax compliance costs," Working Papers 04/13, National Institute of Public Finance and Policy.
    16. Jorge Martinez-Vazquez & Mark Rider, 2003. "Multiple Modes of Tax Evasion: Theory and Evidence from the TCMP," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0306, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    17. Duccio Gamannossi degl’Innocenti & Matthew D. Rablen, 2017. "Tax avoidance and optimal income tax enforcement," IFS Working Papers W17/08, Institute for Fiscal Studies.
    18. Florian Baumann & Tim Friehe & Marcus Jansen, 2009. "On the Economics of Contribution Evasion," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 65(2), pages 162-177, June.
    19. Inés Macho Stadler & David Perez-Castrillo, 2005. "Optimal inspection policy and income-tax compliance," Hacienda Pública Española, IEF, vol. 173(2), pages 9-45, June.
    20. Alm, James, 2018. "Is Economics Useful for Public Policy?," Working Paper Series 6824, Victoria University of Wellington, Chair in Public Finance.
    21. James, Simon & Edwards, Alison, 2010. "An annotated bibliography of tax compliance and tax compliance costs," MPRA Paper 26106, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:72:y:1990:i:4:p:603-13. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristin Waites). General contact details of provider: http://mitpress.mit.edu/journals/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.