Fiscal Anarchy in the U.K.: Modelling Poll Tax Noncompliance
38 Pages Posted: 19 Sep 2007 Last revised: 17 Oct 2022
Date Written: October 1993
Abstract
The U.K.'s experience with the poll tax reminds us that even in an economy with a relatively well developed detection and legal system, one cannot take tax compliance for granted. The experience of the poll tax provides a unique opportunity to study many dimensions of tax compliance. We model nonpayment rates in a short panel of data on the 366 English local authorities. The transparent observability of individual and aggregate liabilities makes reliable measurement of rates of nonpayment possible. Moreover, these rates rose to unprecedented levels as well as exhibiting considerable variation across authorities. This, together with the variation in local taxes both between districts and over time, creates an ideal opportunity for empirical investigation. Our empirical specification allows us to investigate the determinants of compliance as a function of authority characteristics from census and other geographical data. Moreover, the analysis takes seriously the possibility of neighbourhood influences across authority boundaries. Our empirical results confirm the idea that higher taxes lead to larger compliance problems and that attempts to enforce compliance have a positive effect. Neighbourhood effects on non-compliance were less conspicuous, figuring significantly, if at all, only in the final year.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
How Far are We from the Slippery Slope? The Laffer Curve Revisited
By Harald Uhlig and Mathias Trabandt
-
How Far are We from the Slippery Slope? The Laffer Curve Revisited
By Harald Uhlig and Mathias Trabandt
-
How Far are We from the Slippery Slope? The Laffer Curve Revisited
By Mathias Trabandt and Harald Uhlig
-
How Far are We from the Slippery Slope? The Laffer Curve Revisited
By Harald Uhlig and Mathias Trabandt
-
How Far are We from the Slippery Slope? The Laffer Curve Revisited
By Mathias Trabandt and Harald Uhlig
-
Dynamic Scoring: Alternative Financing Schemes
By Eric M. Leeper and Shu-chun S. Yang
-
Dynamic Scoring: Alternative Financing Schemes
By Eric M. Leeper and Shu-chun S. Yang