Search results for " taxation."

Evasion of Tax on Interest Income in a Two-Country Model

2001

t We consider a model where agents can invest money at home and abroad. Their total income comprises interest income from these investments and labor income. Tax on interest income can be evaded — at the risk of being detected and fined. We analyze the optimal portfolio and tax evading decisions of agents with different incomes. In a second step, we scrutinize the optimal government policy. Using different instruments government tries to maximize total tax receipts and to prevent flight of capital as far as possible.

Penalties in the Theory of Equilibrium Tax Evasion: Solving King John’s Problem

2010

The authors characterize equilibria of an income reporting game with bounded returns and no commitment where detected tax evaders are charged the maximally feasible amount. Introducing partial commitment to punishment relief eliminates multiplicity of equilibria. The authors identify a unique limit equilibrium where the poorest citizens evade, intermediate citizens are honest, and the richest citizens are indifferent between evading and truth telling. For small tax rates and auditing cost, committing to a discretionary punishment relief scheme increases expected tax revenue.

Income Equality and Income Taxation

1994

In every society the distribution of income plays an essential role — not only for economists but also for social scientists and politicians. Most people agree that the laissez-faire allo-cation is not equitable but that some redistribution using taxes has to take place. Most of the literature has supposed that a Bergson- Samuelson social welfare function is the appropriate tool for capturing social values in such analyses. However, there are some objections against this approach. First, interpersonal comparability of the individual utilities is needed — an extremely strong and questionable claim. Second, most writers have worked with a concave transformation of individual cardinal utilitie…

Optimal Taxation of Family Income with non-separable disutility of effort

2008

This paper studies the optimal non linear income taxation for a couple with two earners, each with two possible productivity types. For the case of zero cross-elasticity of labor supply, I find the full solution in terms of type distribution and social welfare weights. Binding diagonal constraints are found to be relevant even with independent types. For the case of non zero cross elasticity, some partial results are obtained. No distortion at the top occurs only in families where both earners are at the top of their distribution. High types in heterogeneous families can be upward distorted, even when only downward incentive constraints bind. The sign of their marginal tax depend on the sig…

Bunching in Optimal Taxation

2010

PROCEDURAL RULES in TAX LAW in the context of EUROPEAN LAW and DOMESTIC LAW

2010

I processi di armonizzazione, di riavvicinamento e di coordinamento delle legislazioni tributarie degli Stati membri, al fine di garantire l'attuazione degli obiettivi comunitari, deve riguardare non soltanto le norme sostanziali, ma anche quelle relative alle modalità di accertamento e di riscossione. L'interazione tra principi costituzionali interni e regole comunitarie impone lo dviluppo dell'integrazione anche sulle procedure di controllo e di pagamento, sia in materia di imposte indirette che in materia di imposte dirette.

Essays in optimal taxation and dynamic mechanism design

2010

Public infrastructure investment and taxation: the case of transport policy in the European Union

2009

Magnus Henrekson and Mikael Stenkula, eds., Swedish taxation: developments since 1862 (New York: Palgrave Macmillan, 2015. Pp. 334. ISBN 978113747814…

2017

A Strategic Management Approach to the Problems of EU taxation

2004

This paper adopts a strategic management approach (objectives, strategy, structure, control) to the study of the European Union's taxation problems. Union of States have some strengths vis-a-vis individual States. However, to ensure that all States benefit, they need constant redistribution. As opposed to fiscal problems of unitary states, Unions of States have additional problems related to their differentiated organizational form, and hence they need integrating control mechanisms. This paper studies the EU taxation in view of the above notions common to the literature on fiscal federalism. We find that a strategic management approach can be applied to highlight the problems of taxation i…