Welcome to the new version of CaltechAUTHORS. Login is currently restricted to library staff. If you notice any issues, please email coda@library.caltech.edu
Published September 11, 2017 | Submitted
Report Open

The Effect of Tax and Audit Rates on Compliance with the Federal Income Tax, 1977-85

Abstract

This paper develops a game-theoretic model of the effects of state and federal income tax rates and audit rates on compliance with the federal income tax. Using data drawn primarily from the Annual Reports of the Commissioner of Internal Revenue for the years 1977-85, we find empirical confirmation of the model's prediction that increases in the tax rates increase compliance. We also investigate the overall performance of the federal revenue collection process and find that the entire IRS estimate of the increase in individual noncompliance during 1977-85 is more than accounted for by the decrease in auditing over the same period.

Attached Files

Submitted - sswp638.pdf

Files

sswp638.pdf
Files (898.2 kB)
Name Size Download all
md5:73fc8d3004cc5c990d86c74418bcaad6
898.2 kB Preview Download

Additional details

Created:
August 19, 2023
Modified:
January 14, 2024