Optimal Tax Administration
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Summary:
This paper sets out a framework for analyzing optimal interventions by a tax administration, one that parallels and can be closely integrated with established frameworks for thinking about optimal tax policy. Its key contribution is the development of a summary measure of the impact of administrative interventions—the “enforcement elasticity of tax revenue”—that is a sufficient statistic for the behavioral response to such interventions, much as the elasticity of taxable income serves as a sufficient statistic for the response to tax rates. Amongst the applications are characterizations of the optimal balance between policy and administrative measures, and of the optimal compliance gap.
Series:
Working Paper No. 2017/008
Subject:
Compliance costs National accounts Personal income Revenue administration Revenue performance assessment Tax administration core functions Tax gap
English
Publication Date:
January 20, 2017
ISBN/ISSN:
9781475570267/1018-5941
Stock No:
WPIEA2017008
Pages:
27
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