Series: IMF Working Papers
Author(s): Tamás Papp , and Elöd Takáts
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 2008
Keywords: tax evasion, Laffer curve, tax authority, tax rate cuts,
The paper shows how tax rate cuts can increase revenues by improving tax compliance. The intuition is that tax evasion has externalities: tax evaders protect each other, because they tie down limited enforcement ca...