Tax evasion and self-insurance

• 成果类型: Article
• 署名作者: Lee, K
• 署名单位: University System of Maryland; Towson University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(00)00077-3
• 发表日期: 2001
• 页码: 73-81
• 关键词: tax evasion; self-insurance; Tax avoidance; concealment of income

摘要

This paper examines the effect of an increase in the tax rates on tax evasion in a model where taxpayers self-insure against possible penalties. The analysis shows that the effect depends on the marginal productivity of self-insurance. If the marginal productivity is not too small, an increase in the tax rates leads to greater tax evasion and less tax compliance. This result stands in contrast with the theoretical result in the literature but accords well with empirical findings. (C) 2001 Elsevier Science B.V. All rights reserved.