Do the rich pay their taxes early?

Andreas Fischer () and Lucca Zachmann ()
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Lucca Zachmann: Swiss National Bank

International Tax and Public Finance, 2020, vol. 27, issue 1, No 8, 194-214

Abstract: Abstract This paper examines the effects of household income on interest credits from early tax payments. The hypothesis that the richest households pay their income taxes early is tested in a demand specification for interest credit on early tax payments. The empirical analysis uses regional data from 170 municipalities in the canton of Zurich from 2007 to 2013. A one standard deviation increase in the ratio for household income between the mean and the 75th percentile increases the ratio of interest tax credit to total taxes by 5%. The finding that high-income households pay their taxes early supports the view that institutional arrangements supporting early tax payments make the (effective) tax system more regressive.

Keywords: Early tax payment; Demand for interest credit on early tax payment (search for similar items in EconPapers)
JEL-codes: D14 D30 E21 E41 H31 (search for similar items in EconPapers)
Date: 2020
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Working Paper: Do the rich pay their taxes early? (2018)
Working Paper: Do the rich pay their taxes early? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:27:y:2020:i:1:d:10.1007_s10797-019-09541-0

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DOI: 10.1007/s10797-019-09541-0

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