Purpose – When a small business purchases a capital asset, its cost for tax purposes is spread over the useful life of the asset through the process of depreciation. It has become common in the USA for policy makers to enhance depreciation rules in an effort to increase business investment in...

Purpose – Small businesses play a vital role in job creation and economic growth, and previous studies have noted that higher state tax rates may reduce entrepreneurial activity, growth, and hiring. The paper aims to discuss this issue. Design/methodology/approach – In this paper, the...

Individuals with income not reported to the tax authority by a third party (e.g., the self-employed, those earning tips) may be less likely to be detected evading taxes relative to the case in which their income is subject to third-party reporting. However, their compliance responses—to...

Most arguments in favor of the Internet Tax Freedom Act (ITFA) assume that taxing Internet access would reduce Internet use. The authors investigate this possibility empirically, making use of panel data covering all U.S. states for the years 1998, 2000, and 2001. Statutory variation in the...