Tax changes and economic behavior: The case of tax evasion

This article addresses two issues concerning tax changes and economic behavior: (1) do marginal tax rates influence tax evasion behavior and, if so, how'?, (2) will changes in marginal income tax rates have effects on tax evasion? The analyses show that marginal income tax rates do influence ta...

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Bibliographic Details
Published inJournal of economic psychology Vol. 13; no. 4; pp. 657 - 677
Main Author Wahlund, Richard
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 01.12.1992
Elsevier
North-Holland Pub. Co
Elsevier Sequoia S.A
SeriesJournal of Economic Psychology
Subjects
Behavior
Economic behaviour
Income taxes
Psychological aspects
Studies
Sweden
Tax evasion
Tax rates
Sweden
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Summary:This article addresses two issues concerning tax changes and economic behavior: (1) do marginal tax rates influence tax evasion behavior and, if so, how'?, (2) will changes in marginal income tax rates have effects on tax evasion? The analyses show that marginal income tax rates do influence tax evasion, but only indirectly. However, despite the fact that marginal tax rates were reduced in Sweden in 1983–1985, no changes in tax evasion behavior were found during the first half of the income tax reform period (1982–1984). A number of tentative explanations for this finding are discussed.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0167-4870
1872-7719
DOI:10.1016/0167-4870(92)90017-2