This paper traces the implications of replacing the estate tax with a basis carry over regime under the income tax. Such changes are likely to level the playing field and generally extend uniform tax treatment to gifts and bequests, spousal bequests and bequests to children, gains realized...

Examines the impact of marginal tax rates, which incorporate the earned income tax credit as it existed in 1988, on the reporting of income by low-level taxpayers. Concludes that the amount of income underreported does not appear to be affected by the relatively high marginal tax rates which...

Researchers often rely on self–reported tax data to gauge the effect of taxes on economic activity. These data, however, are subject to measurement errors in the presence of tax evasion. We find evidence that estimated income and tax price elasticities are biased due to errors–in variables...

Estate Tax Reforms over the past quarter of a century reflect a number of objectives. These include harmonization of estate and gift taxes, reductions in tax burdens, easing liquidity constraints, and simplifying compliance and tax administration. As a result of these changes, many taxpayers...

This paper examines the compliance pattern of small businesses, using pooled 1985 and 1988 Taxpayer Compliance Measurement Program (TCMP) data. Specifically, we focus on the voluntary reporting compliance of income from proprietorship, farm, and rental real estate activities. We find that...

This paper explores the behavioral response of taxable bequests to estate taxation. To gauge its effects, the estate tax is converted to an equivalent income tax. This highlights the importance of expected rates of return, and also makes it possible to compare effective tax rates on saving over...

This paper explores the implications of evaluating income tax preferences, or tax expenditures, under a consumption tax baseline. More specifically, it examines the conceptual differences between income and consumption tax baselines, and employs an X-tax prototype of a consumption tax to gauge...

This paper summarizes the tax treatment of wealth transfers, examines the profile of taxpayers, and presents a review of some of the empirical evidence on the effects of estate, gift, and income taxes on the behavior of the wealthy.

Contrary to the conventional view on consumption taxes, state and local sales taxes extend to the acquisition of capital assets and are especially burdensome on equipment. These taxes partially offset allocational distortions caused by tax provisions present prior to the Tax Reform Act of 1986...

The estate tax has received a great deal of attention from policy makers and the public in recent years. Yet we know little about its effect on the transfer of wealth. In this paper we explore the effect of the tax on inter vivos giving. In particular, we look at the degree to which wealthy...