EconPapers    
Economics at your fingertips  
 

Tax Knowledge and Tax Manipulation: A Unifying Model

Ashley Craig and Joel Slemrod

Journal of Political Economy Microeconomics, 2024, vol. 2, issue 2, 298 - 334

Abstract: We provide a unified analysis of taxation and taxpayer education when individuals misunderstand complex tax systems. The analysis is independent of whether income is earned legitimately, or by avoiding or evading taxes. In this sense, learning about tax minimization strategies is similar to learning about the tax code. The government balances a trade-off: a better understanding of the tax system allows taxpayers to optimize more effectively, but affects government revenue. Optimal taxpayer education and optimal redistribution are characterized ex post by aggregate sufficient statistics that do not require information about how biases or behavioral responses vary across the decision margins.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1086/727557 (application/pdf)
http://dx.doi.org/10.1086/727557 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Tax Knowledge and Tax Manipulation: A Unifying Model (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jpemic:doi:10.1086/727557

Access Statistics for this article

More articles in Journal of Political Economy Microeconomics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2025-03-22
Handle: RePEc:ucp:jpemic:doi:10.1086/727557