INCOME TAX GROUPING AS TAX MANAGEMENT TOOL: LESSONS FROM EU WITH FOCUS ON POLAND

Income Tax Buyouts and Income Tax Evasion

A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected tax revenues. This will be the case if (1) the audit probability is constant and the penalty for eva...

Fixing the Income Tax with the Fair Tax

Optimal Tax Mix with Income Tax Non-compliance∗

Although developing countries face high levels of income inequality, they rely more on consumption taxes, which tend to be linear and are less effective for redistribution than a non-linear income tax. One explanation for this pattern is that the consumption taxes are generally more enforceable in these economies. This paper studies the optimal combination of a linear consumption tax, with a no...

The NIT as income tax reform

During the last decade the idea of a negative income tax (NIT) as the centerpiece program in antipoverty policy has faded politically to near extinction. Even if political support were favorable, I doubt that the NIT is currently a practical antipoverty proposal. Having made this admission, however, I hasten to say that I did not come to bury the negative income tax, but rather to suggest that ...

Negative Income Tax Plan