Taxpayer Reporting Responses and the Tax Reform Act of 1986

26 Pages Posted: 7 Sep 2010

See all articles by James Alm

James Alm

Tulane University

Sally Wallace

Georgia State University - Department of Economics; University of Pretoria

Abstract

This paper examines the effects of the Tax Reform Act of 1986 on the reporting decisions of taxpayers, using microlevel information from the 1984 and 1989 Statistics of Income. We find that tax reform clearly mattered in the reporting decisions of individuals, with reporting elasticities that cluster between 0.3 and 0.7. However, our results also indicate that individuals' estimated responses vary in different ways for individuals with different income levels, in ways that differ by the types of incomes received by taxpayers, in ways that are sensitive to the estimation approach, and in ways that depend upon data adjustment methods.

Suggested Citation

Alm, James and Wallace, Sally, Taxpayer Reporting Responses and the Tax Reform Act of 1986. Public Budgeting & Finance, Vol. 30, Issue 3, pp. 1-26, Fall 2010. Available at SSRN: https://ssrn.com/abstract=1672928 or http://dx.doi.org/10.1111/j.1540-5850.2010.00960.x

James Alm (Contact Author)

Tulane University ( email )

United States
5048628344 (Phone)

Sally Wallace

Georgia State University - Department of Economics ( email )

Department of Economics
35 Broad Street, 6th Floor
Atlanta, GA 30303-3083
United States
(404) 413-0046 (Phone)

University of Pretoria ( email )

Physical Address Economic and Management Sciences
Pretoria, Gauteng 0002
South Africa

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