Does Tax-Collection Invariance Hold? Evasion and the Pass-Through of State Diesel Taxes
Wojciech Kopczuk (),
Justin Marion (),
Erich Muehlegger and
Joel Slemrod ()
American Economic Journal: Economic Policy, 2016, vol. 8, issue 2, 251-86
In simple models, the incidence of a tax is independent of the identity of the remitting party. We illustrate that this prediction fails to hold if opportunities for evasion differ across economic agents. Second, we estimate how the incidence of state diesel taxes varies with the point of collection, where the remitting party varies across states and over time. Moving tax collection upstream from retailers substantially raises the pass-through of diesel taxes to consumers. Furthermore, tax revenues increase when collecting taxes from wholesalers rather than from retailers, suggesting that evasion is the likely explanation for the incidence result. (JEL H22, H25, H26, H71, L71)
JEL-codes: H22 H25 H26 H71 L71 (search for similar items in EconPapers)
Note: DOI: 10.1257/pol.20140271
References: Add references at CitEc
Citations View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to AEA members and institutional subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aejpol:v:8:y:2016:i:2:p:251-86
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Journal: Economic Policy is currently edited by Alan J. Auerbach
More articles in American Economic Journal: Economic Policy from American Economic Association Contact information at EDIRC.
Series data maintained by Jane Voros ().