A Further Inquiry into Determinants of Aggregate Income Tax Evasion

Richard Cebula () and Richard McGrath

MPRA Paper from University Library of Munich, Germany

Abstract: This study empirically investigates the impact of a variety of factors on income tax evasion in the United States over the period 1973 to 1997. The aggregate estimates indicate that federal income tax evasion may be an increasing function of the federal personal income tax rate and the public’s dissatisfaction with government. In addition, income tax evasion may be a decreasing function both of penalties imposed by the IRS on unpaid taxes and IRS audit rates. Moreover, a trend variable that may to some extent reflect the impact of improved IRS income-detection technologies over time exhibits a negative and significant coefficient, implying that such technologies may diminish tax evasion.

Keywords: income tax evasion; underground economy; tax rates; penalties; audit rates (search for similar items in EconPapers)
JEL-codes: E26 H24 H26 H31 (search for similar items in EconPapers)
Date: 2001-06-19
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Global Business & Economics Review-Anthology 2002 1.3(2002): pp. 343-349

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/59489/1/MPRA_paper_59489.pdf original version (application/pdf)

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:pra:mprapa:59489

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().