Year: 1987
Type: report
Abstract: This paper uses time-series data to investigate how changes in capital gains tax rates affect taxpayer compliance.It finds that a one percent increase in the margina1 tax rate reduces voluntary compliance by between one half and one percent.These results confirm the findings of previous studies based on individual household data.They also suggest that at least one quarter of the observed capital gain realization response to changes in marginal tax rates is due to changes in reporting behavior, rather than portfolio behavior.
DOI: 10.3386/w2119
Author: James Poterba
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1538335609