Gorodnichenko, Yuriy; Martinez-Vazquez, Jorge; Peter, … - International Center for Public Policy, Andrew Young … - 2007
Using micro-level data, we examine the effects of Russia’s 2001 flat rate income tax reform on consumption, income, and … find that large and significant changes in tax evasion following the flat tax reform are associated with changes in … changes. We show that because of the strong tax evasion response the efficiency gain from the Russian flat tax reform is at …