Non-Compliance under a Negative Inomce Tax

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Abstract

In this note we model the individual decision on income underreporting in a system with a negative income tax. We show that a change in the tax rate has opposing effects on the compliance behavior of the poor and the rich.
Original languageEnglish
Number of pages3
JournalEconomics Bulletin
Volume8
Issue number8
Publication statusPublished - 2008

Fields of science

  • 502010 Public finance
  • 502047 Economic theory
  • 502046 Economic policy

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