Work

Policy Options for Combatting Tax Noncompliance

Year: 1990

Type: article

Abstract: The Internal Revenue Service estimates that the “tax gap, ” the difference between taxes owed and taxes voluntarily paid, is approaching 100 billion. This article examines seven categories of enforcement instruments for combatting noncompliance. The discussion has two objectives: (1) to summarize what is known about the effectiveness of each type of instrument in reducing noncompliance, and (2) to delineate criteria for evaluating the desirability of enforcement interventions of each type. Suggested criteria differ across classes of instruments, but several themes are repeatedly emphasized. One is that a relevant dimension of effectiveness is equity; a second is that private costs matter, particularly when incurred by the already compliant and independent third parties.

Source: Journal of Policy Analysis and Management

DOI: 10.2307/3325110

Author: Daniel S. Nagin

Institution: Carnegie Mellon University

Language: English

Topic: Taxation and Compliance Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,770