Mill, Wladislaw; Schneider, Cornelius Johannes Franziskus - 2023
This paper investigates whether tax evasion can be beneficial for an optimal income tax schedule. Past theoretical … replaced with a 28% tax rate with the option of tax evasion, without any loss in tax revenue. Strikingly, this effect persists … evade) is more efficient than simply lowering statutory tax rates. Our findings suggest that the opportunity for tax evasion …