CASH REDUX, CREDIT CARD SURCHARGES, AND THE TAX GAP

Jay A. Soled () and James Alm ()
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Jay A. Soled: Rutgers Business School
James Alm: Tulane University

No 2607, Working Papers from Tulane University, Department of Economics

Abstract: “Cash is king” is a long-standing mantra among many businesspeople. It has a less favorable aura in the tax compliance world, where cash is often used to circumvent one’s tax reporting obligations. This analysis explores the current role of cash in today’s economy and suggests reasons why Congress should curtail its use or, at the very least, promote other forms of payment.

Keywords: Tax compliance; tax gap; credit cards; cash; cryptocurrencies; third-party information; nudges (search for similar items in EconPapers)
JEL-codes: H2 H26 (search for similar items in EconPapers)
Date: 2026-05
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http://repec.tulane.edu/RePEc/pdf/tul2607.pdf First Version, May 2026 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tul:wpaper:2607

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