In 1995 a group of 1724 randomly selected Minnesota taxpayers was informed by letter that the returns they were about to file would be ‘closely examined’. Compared to a control group that did not receive this letter, low and middle-income taxpayers in the treatment group on average increased tax payments compared to the previous year, which we interpret as indicating the presence of noncomplian...

Objective: To estimate cigarette demand and to simulate a tax policy targeted to reduce tobacco consumption. Materials and methods: Demand was estimated using a vector error correction model. Simulation exercises present the impact of a tax increase on consumption and revenues. Results: Changes in real income and the real price of cigarettes affect the demand for cigarettes in Argentina. Th...

Optimality conditions and comparative static properties of the optimal Mirrleesian nonlinear income tax are obtained for a nite population and quasilinear-in-consumption preferences. Contrary to Weymark (1987) who considers quasilinear-in-leisure preferences, the linearity with respect to gross income, which is observed by the government and used as a tax base, is lost. A reduced-form optimal i...

This report summarizes the results of work conducted as a short-term pension tax policy advisor to the Philippine government. This technical assistance is being provided through the USAID-funded AGILE project. The report contains general comments on the pension reform agenda described in a draft white paper and preliminary quantitative results on the individual income tax revenue effects of the...

David Campbell and Michael Parisi are economists with the Individual Statistics Branch Returns Analysis Section. This article was written under the direction of Jeff Hartzok, Chief. T axpayers filed 130.3 million returns for Tax Year 2001, of which almost 94.8 million (or 72.8 percent) were classified as taxable returns. Adjusted gross income (AGI) on taxable returns fell 4.0 percent to $5,847 ...

Social scientists and philosophers have been concerned with issues surrounding the distribution of income or income inequality for over 200 years—the economist and philosopher Adam Smith discussed these issues as early as 1776. Academic writers have been writing on income inequality measurement issues for at least a century. Policy makers have also long been interested in income inequality issu...

A client wants help in estimating his personal income taxes for next year. Another client wants help in order to decide whether to lease or buy a new machine. A condominium association needs assistance in developing a budget. A promoter needs help in putting together an offering to sell a real estate limited partnership to a group of doctors. What do these engagements have in common? Each one m...

OBJECTIVE During the past decades, smoking prevalence in Greece was estimated to be near or over 40%. Following a sharp fall in cigarette consumption, as shown in current data, our objective is to assess smokers' sensitivity to cigarette price and consumer income changes as well as to project health benefits of an additional tax increase. METHODS Cigarette consumption was considered as the de...