The paper discusses the tax treatment of commuting where wages and housing cost vary across locations. An income tax distorts the locational choices of agents, who dislike commuting and have preferences for place of residence Wages, housing cost and commuting cost determine how subsidising or...

The paper examines the convergence of tax systems in Central and Eastern European countries (CEECs) over the period 1995-2018. Due to the increasing impact of tax competition, we have focused on income taxes, in particular, corporate ones. We have identified the factors that influence the...

This paper studies tax evasion in the form of under-reported wages in Ecuador using microdata from a combination of electronic billing and personal income tax returns filed in 2017. Bringing together this novel combination of data, the study applies the standard method Pissarides and Weber...

Establishing an equitable and efficient tax system is essential for reducing poverty, combating inequality, and fostering sustainable economic growth. Rwanda's government has recognized this and implemented significant changes to the personal income tax schedule for 2023 and 2024 as part of...

We decompose the redistributive effect of direct taxes into vertical, horizontal, and reranking components applying the methods of Urban and Lambert (Public Finance Review, 2008). In the first such application to the UK, and using yearly data covering 1977-2020, we find that redistributive...

Public disclosure laws on politicians' outside income aim to enhance electoral accountability, but their effects remain unclear and may backfire. Using a German disclosure reform, administrative tax data, and a difference-in-difference design, we show that MPs increased their outside income...

Tax administrations increasingly use audits via mail (correspondence audits) to audit taxpayers. Correspondence audits are cheaper than face-to-face audits but their effects on compliance are unclear. We investigate the effects of correspondence and face-to-face audits on post-audit tax...

In this paper, we investigate the effect of higher personal income taxes on CEO and firm performance in publicly traded US firms. In response to higher taxes on compensation, CEOs are less likely to reach performance goals and spend more time working in boards outside of their firm. At the same...

This report presents results on a review of data available to the State Revenue Committee for estimating the Personal Income Tax and Social Security Contribution gaps. It is concluded that SRC has sufficient quality data available from operational audits to assess the gaps

Is charitable giving politically motivated? This article uses exhaustive administrative household panel data and a natural experiment to investigate the giving behavior of wealthy households and quantify their preferences for charitable and political donations. Our dataset includes all the...

We adopted an empirical approach to capture the macroeconomic impact of tax changes for the examined period from 1974 to 2018. It is generally accepted that vector autoregression model (VAR) has proven useful for describing the dynamic interrelationships of multivariate series. Our empirical...

Joint taxation of married couples represents a puzzle for welfare economics. We investigate whether political economy forces can explain its persistence. We develop sufficient statistics to determine whether a reform towards individual taxation would garner majority support and apply this...

This paper tests whether partially unemployed workers value future preserved benefits when they bunch at the kink of the unemployment insurance benefit-withdrawal schedule. I extend the bunching formula of Saez (2010) to a dynamic setting that accounts for the value of future benefits tied to...

Die Studie untersucht den Beitrag der unterschiedlichen Einkommensarten, insbesondere der Einkommen aus unselbständiger Beschäftigung zur Finanzierung der öffentlichen Haushalte im Jahr 2019. Neben dem typischerweise dargestellten Aufkommen aus direkten Abgaben (Sozialbeiträge und...

South Africa is one of the most unequal economies globally. In this paper, we examine the design of its personal income tax (PIT), with a focus on its redistributive function. We apply the Pfähler decomposition method to analyse the redistributive effects of key components of the South African...

We propose a new approach to assess the impact of regulatory changes on the production sector such as competition policies, taxing intermediate goods, robots or AI, trade regulation, production of public firms or environmental standards for firms. Our framework covers multidimensional nonlinear...

We use variation in marginal tax rates and in tax bracket thresholds at which they apply in order to identify the substitution and income effects of tax reforms. We use a triple-difference estimator that exploits variation from subnational tax reforms, for which behavioral responses to taxes are...

An often neglected implication of couple taxation is its impact on marital sorting. A tractable model of such an impact is offered in this paper. It reveals that, as compared to joint taxation with income splitting, individual taxation makes higher-ability individuals more picky in the marriage...

We estimate the effects of personal income tax decreases on financial well-being, including qualitative subjective assessments and quantitative measures. A plausibly causal design shows that tax decreases in the Tax Cuts and Jobs Act made survey respondents more likely to say they were “living...

The Scottish Government has a range of tax powers at its disposal, which it has used in recent years to forge an increasingly distinct tax policy from the rest of the UK. In its 2025-26 Budget, the Scottish Government made a number of tax policy changes, including to income tax, business rates,...

This note examines the effective income tax rates of top earners in Honduras, using a novel approach that links personal and corporate income tax data. This comprehensive income measure, achieved through collaboration with the Honduras Tax Authority (SAR), reveals a crucial link between the...

The study examines the shift in taxation of open-ended fixed-income funds in Brazil from a realization basis to an accrual basis (locally known as come-cotas), which was introduced in 1998 and more recently extended to include private closed-end funds and offshore trusts through the enactment of...

Flat tax systems have gained traction in countries that transitioned from socialism, with more than 20 nations in Eastern Europe and Central Asia adopting such systems since the mid-1990s. These reforms aimed to streamline tax processes, enhance compliance, and boost economic growth. While...

The remote work revolution raises the possibility that a larger segment of the population will be able to sever the geographic linkage between home and work. What are the taxing rights of states as to nonresident remote workers? May a state impose income taxes on nonresident employees only to...

The remote work revolution raises the possibility that a much larger segment of the population will be able to sever the geographic linkage between home and work. This new development implicates several foundational questions in the law and economics of U.S. fiscal federalism. What are the...

We examine the revenue and redistributive effects of tax policy reforms in twelve European countries over the decade between the financial crisis and the outbreak of the COVID-19 pandemic, setting them against the implications of a hypothetical system reflecting the extent of fiscal drag...

We develop, apply, and test a new measure of the marriage tax: the reduction in future spending from getting married. Our measure is a comprehensive, actuarial (expected) present value. It incorporates all major and most minor US tax and benefit programs, weighing the present value of additional...

We document the development and operation of the SWITCH model, Ireland's taxbenefit microsimulation model. Using the EUROMOD platform and process of creating an input model, we discuss adjustments to the underlying data, such as reweighting and uprating, aiming at improving representativeness in...

The paper discusses the tax treatment of commuting where wages and housing cost vary across locations. An income tax distorts the locational choices of agents, who dislike commuting and have preferences for place of residence Wages, housing cost and commuting cost determine how subsidising or...