Abstract

http://ssrn.com/abstract=2405812
 


 



Tax Amnesties


Carla Marchese


University of Eastern Piedmont - A. Avogadro - Department of Public Policy and Public Choice

March 7, 2014

Preliminary Version of a Contribution to Encyclopedia of Law and Economics, Edited by Jürgen Backhaus, Forthcoming

Abstract:     
A tax amnesty can be a useful tax policy tool when exploited in exceptional circumstances. Amnesties can also be used systematically as a discriminatory mechanism to improve the efficiency or even the equity of the tax system, but only if government commitment to enforcing tax law is credible. If such credibility is lacking, amnesties may actually undermine future tax revenue by breaching the implicit psychological contract between taxpayers and the state, thus reducing taxpayers’ internal motivation for compliance. Amnesties also have important political implications, because they can signal intertemporal inconsistency in government decision-making and may be linked to the political business cycle. Amnesties respond to externalities among states or layers of government deriving from tax and enforcement policies, and network effects in these fields can trigger waves of amnesties.

Number of Pages in PDF File: 14

Keywords: tax amnesty, tax evasion, tax policy

JEL Classification: H20, H26, K34

working papers series





Download This Paper

Date posted: March 8, 2014 ; Last revised: July 13, 2014

Suggested Citation

Marchese, Carla, Tax Amnesties (March 7, 2014). Preliminary Version of a Contribution to Encyclopedia of Law and Economics, Edited by Jürgen Backhaus, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2405812 or http://dx.doi.org/10.2139/ssrn.2405812

Contact Information

Carla Marchese (Contact Author)
University of Eastern Piedmont - A. Avogadro - Department of Public Policy and Public Choice ( email )
Via Cavour 84
15100 Alessandria
Italy
+39-131-283718 (Phone)
+39-131-283704 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 111
Downloads: 33

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.250 seconds