How Helpful Is Econometrics to Tax Research?

Econometrics is defined as the application of statistical analysis (that is, numbers) to theory. The promise of such a purportedly “objective” and “scientific” approach to tax policy allowed econometrics to partly displace jurisprudence within the field of taxation. However, econometric methodology does not always follow the scientific method and its adherents often present econometric “truths” in quasi-religious terms. The “17 Theses” are presented here as a list of objections to such econometric methodology. For each of the “Theses,” a short explanation is presented illustrating the perceived shortcoming of econometrics to tax lawyers