High Tax Compliance Results in Smaller Government

Michael McKee

Chapter Chapter 4 in Essays on Government Growth, 2021, pp 67-73 from Springer

Abstract: Abstract High tax compliance will reduce rather than facilitate the growth of government spending. There are several reasons for this. First, tax evasion reduces the effective price of public programs thus increasing the quantity demanded. Second, tax evasion is not uniform across income classes and the mix of public programs will be altered in favor of services with higher income elasticities if those evading are those with higher incomes. Third, tax evasion contributes to other forms of non-compliance and raises the cost of enforcement of laws in general.

Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:spr:stpchp:978-3-030-55081-3_4

Ordering information: This item can be ordered from
http://www.springer.com/9783030550813

DOI: 10.1007/978-3-030-55081-3_4

Access Statistics for this chapter

More chapters in Studies in Public Choice from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().