TAX COMPLIANCE INTENTIONS OF LOW-INCOME INDIVIDUAL TAXPAYERS

2004 ◽  
pp. 1-25 ◽  
Author(s):  
Henry Efebera ◽  
David C Hayes ◽  
James E Hunton ◽  
Cherie O’Neil
Keyword(s):  
Low Income ◽  
Tax Compliance ◽  
Income Individual

Is Its Success Generalizable?

2019 ◽  
pp. 72-93
Author(s):  
Lane Kenworthy
Keyword(s):  
Income Inequality ◽  
Population Size ◽  
Labor Unions ◽  
Low Income ◽  
Work Ethic ◽  
Unique Feature ◽  
Tax Compliance ◽  
Small Population ◽  
Close Inspection ◽  
Social Democratic

Abstract: Social democratic capitalism’s chief practitioners have been the Nordic nations: Denmark, Finland, Norway, and Sweden. Skeptics discount the Nordics’ success on the presumption that these nations have some unique feature that allows them, and only them, to reap the benefits of social democratic policies without suffering tradeoffs. Versions of this story identify the Nordics’ secret weapon as an immutable work ethic, superior intelligence, trust, solidarity, small population size, racial and ethnic homogeneity, institutional coherence, effective government, corporatism, a willingness to be taxed, tax compliance, strong labor unions, or low income inequality. I examine these hypotheses. None holds up to close inspection.

scholarly journals Why Is Tax Knowledge and Tax Understanding Important?

2019 ◽  
Vol 16 (2) ◽  
pp. 187
Author(s):  
Jeni Susyanti ◽  
Noor Shodiq Askandar
Keyword(s):  
Low Income ◽  
Crucial Role ◽  
Income Tax ◽  
Quantitative Method ◽  
Tax Compliance ◽  
Secondary Data ◽  
Business Owners ◽  
Compliance Level ◽  
Level Of Understanding ◽  
Positive Effect

Micro, small, and medium (MSMEs) business play a crucial role in the economy of Indonesia. Unfortunately, there is low-income tax receipt from MSME sectors. This study examined the effect of taxation knowledge and understanding toward tax compliance among MSMEs owners, exclusively culinary business owners. The quantitative method was used in analyzing the data collected. The sample size for the research was 50, with all MSME owners responded through the questionnaire distributed. This study concluded that there is a positive effect between taxation knowledge and level of understanding toward tax compliance. It means that an increase in tax knowledge and tax understanding level can lead to an increase of tax compliance level. Although this study succeeded to prove the effect between variables, the results of secondary data indicate that many MSME owners are still confused in implementing tax regulations, PP-23/2018. 

Does global titling sustain informal taxation? Evidence from Ecuadorian urban slums

2018 ◽  
Vol 23 (6) ◽  
pp. 721-736
Author(s):  
Georgi Boichev
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Public Services ◽  
Tax Compliance ◽  
Free Riding ◽  
Urban Neighborhoods ◽  
Urban Slums ◽  
Average Effect ◽  
Broad Base ◽  
Low Levels

AbstractLow-income urban neighborhoods in developing countries receive low levels of public services, often not supplemented by community provision due to low rates of informal tax compliance. This paper presents evidence from low-income neighborhoods in Quito, Ecuador using an IV empirical strategy that the global titling of neighborhoods sustains informal taxation. The estimates reveal a sizable average effect of global titling on in-kind labor household that is drawn from a broad base. Evidence is also found which suggests that the possession of a global title provides a neighborhood organisation with tools that deter free-riding behavior even among the individually-titled residents.

Book Reviews

2017 ◽  
Vol 55 (4) ◽  
pp. 1624-1626
Keyword(s):  
Low Income ◽  
Tax Policy ◽  
Tax Reform ◽  
Tax Compliance ◽  
College Attendance ◽  
Capital Gains ◽  
Policy Implications ◽  
Economic Research ◽  
Status Report ◽  
The University

Amanda Griffith of Wake Forest University reviews “The Economics of Tax Policy,” by Alan J. Auerbach and Kent Smetters. The Econlit abstract of this book begins: “Eleven papers, prepared for a conference held at the Brookings Institution in December 2015, plus commentary, present nontechnical reviews of insights gained from recent economic research that can inform the policy process and provide an overview of the major areas of tax analysis. Papers discuss tax reform in a changing economy; effects of income-tax changes on economic growth; environmental taxation; tax compliance and enforcement—an overview of new research and its policy implications; economic and distributional effects of tax-expenditure limits; tax benefits for college attendance; tax policy toward low-income families; the economics of corporate- and business-tax reform; US capital gains and estate taxation—a status report and directions for a reform; tax policy and retirement savings; and fundamental tax reform—a comparison of three options. Auerbach is Robert D. Burch Professor of Economics and Law and Director of the Burch Center for Tax Policy and Public Finance at the University of California, Berkeley. Smetters is Boettner Chair Professor with the Wharton School at the University of Pennsylvania.”

scholarly journals Taxation with Mobile High-Income Agents: Experimental Evidence on Tax Compliance and Equity Perceptions

Games ◽  
2019 ◽  
Vol 10 (4) ◽  
pp. 42
Author(s):  
Sandro Casal ◽  
Veronika Grimm ◽  
Simeon Schächtele
Keyword(s):  
Low Income ◽  
Tax Compliance ◽  
High Income ◽  
Random Allocation ◽  
Allocation Mechanism ◽  
Treatment Variation ◽  
Regressive Tax ◽  
Compliance Decisions ◽  
Information Treatment ◽  
Income Taxpayers

In a laboratory experiment on tax compliance, we model a situation in which high-income taxpayers can leave a tax system that finances a public good. We compare low-income taxpayers’ compliance decisions and equity perceptions across treatments in which they are informed or not informed about the mobility option of high-income taxpayers. This allows us to test if low-income taxpayers regard the mobility option as a rationale for implementing a regressive tax schedule. To investigate if a potential `justification effect’ of the mobility option depends on the causes of income heterogeneity, we also varied whether income was allocated based on relative performance in a prior ability task or at random. Interestingly, although the performance-based allocation itself was judged to be fairer, we observed higher compliance under the random allocation mechanism. However, compliance and equity perceptions did not significantly differ by the information treatment variation, regardless of the source of income inequality. The results indicate that the threat of losing high-income taxpayers’ contributions does not lead low-income taxpayers to view the regressive tax schedule more favorably. This suggests that taking the differential mobility options as given and altering tax schedules accordingly may not be perceived as an adequate policy response.

scholarly journals THE CASE FOR OVER-WITHHOLDING FEDERAL INCOME TAX: BENEFITS TO LOW-INCOME TAXPAYERS

2021 ◽  
Vol 12 (2) ◽  
Author(s):  
Susannah Kroeber
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Tax Compliance ◽  
Single Source ◽  
Multiple Sources ◽  
Marginal Rate ◽  
Federal Income Tax ◽  
Tax Benefits ◽  
The Government ◽  
Income Taxpayers

The W-4 tax withholding form has been used by individual taxpayers for decades to calculate their tax withholdings. It is based, however, on the faulty assumption that most U.S. workers have a single source of income. This assumption has caused millions of taxpayers to incur unnecessary tax debt. The formula for calculating federal income tax withholding for employees routinely under-withholds for low-income workers who have multiple sources of income because, without substantial documentation and calculation by the employee, employers withhold as if they are the employee’s single source of income. Taxpayers may therefore see their income tax withheld at too low a marginal rate, oftentimes zero percent, and can have significant balances due on short notice at the end of the tax year.This Note documents that reality and proposes a solution. It proposes a reconception of the Form W-4 and the withholding formula through the lens of low-income filers and aims for a policy of over-withholding from those filers in order to reduce surprise tax due and related penalties. The proposed solution removes the bias towards achieving a “zero refund” from the form design by eliminating the tax-free threshold—for most filers, the equivalent of their standard deduction—from the withholding scheme. As discussed in the Note, the proposed policy would also have the benefit of increasing tax compliance, minimizing bureaucratic burdens, and providing a revenue-neutral solution for the government. This Note further suggests an extension of the proposed policy to provide a much-needed savings mechanism for low-income filers.

scholarly journals PERSONAL INCOME TAX: EXPERIENCE OF FOREIGN COUNTRIES

2019 ◽  
pp. 76-86
Author(s):  
Oksana TULAI ◽  
Andrii YAMELYNETS
Keyword(s):  
Low Income ◽  
Tax Evasion ◽  
Income Tax ◽  
Tax Compliance ◽  
Personal Income ◽  
Personal Income Tax ◽  
Foreign Experience ◽  
Advantages And Disadvantages ◽  
Foreign Countries

Introduction. In the current conditions of the integration movement of Ukraine to the European Union and the reform of the institutions of state power, the issue of studying foreign experience of the system of taxation of individuals' incomes is actualized. The application of effective practices of other states will contribute to increasing the fiscal role of the personal income tax in Ukraine, reducing social inequality and increasing the welfare of the population. Purpose. The purpose of the article is to find out the features, trends and problems of the functioning of the personal income tax in foreign countries. Results. The article deals with the foreign experience of functioning of the system of personal income taxation. The role and role of PIT in the EU and OECD countries is shown. The proportional and progressive approach to taxation of this tax is considered, their key advantages and disadvantages are determined. An analogy has been made between the European states, the OECD member states and Ukraine. The objective necessity of establishing a non-taxable minimum or partial exemption of citizens' incomes from taxes in the context of support of low-income categories of the population and ensuring social justice is substantiated. Conclusions. It is concluded that in developed countries, the progressive system of taxation of the PIT along with the minimum non-taxable minimum is an effective tool for generating budget revenues and solving social inequalities in society. Instead, third-world states can not use this mechanism in a qualitative way due to significant tax compliance problems. They apply a proportional taxation system for PIT that minimizes tax evasion and international competitiveness.

scholarly journals Addressing Excluded Sections through Sustainable Financing Policy Drives: Bangladesh Context

2018 ◽  
Vol 5 (2) ◽  
pp. 4433-4437
Author(s):  
Dr. Pinki Shah
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Insurance Policy ◽  
Common People ◽  
Financing Policy ◽  
Income Individual ◽  
Sustainable Finance ◽  
Micro Insurance ◽  
Sustainable Financing ◽  
Expected Outcomes

Financial inclusion could perform as a major force for the reduction of poverty by reducing inequalities. There are evidences that a small loan, a savings account or a micro insurance policy can make great difference to a low-income individual or a family. In addition, access to financial services is often viewed as essential factors to ensure participation of common people in the activities of the economy. The paper is about examining the sustainable finance initiatives of Bangladesh in the financial sector to address the vulnerable sections of the country. The paper identified certain barriers that are required to be addressed to draw expected outcomes.

scholarly journals Can Tax Agents Support Tax Compliance in Low-Income Countries? A Review of the Literature and some Preliminary Evidence from Uganda

2021 ◽  
Author(s):  
Giovanni Occhiali ◽  
Fredrick Kalyango
Keyword(s):  
Low Income ◽  
Tax Compliance ◽  
Preliminary Evidence ◽  
Low Income Countries ◽  
Perceived Fairness ◽  
Self Assessment ◽  
Tax System ◽  
Hard Time ◽  
Credible Threat ◽  
The Cost

Since the late 1970s, many countries have based their tax systems on self-assessment – taxpayers are expected to evaluate their liabilities autonomously, and voluntarily remit their tax due. If the tax system is perceived as fair and easy to navigate, with credible threat of penalisation for non-compliance, self-assessment reduces the cost of tax administration without significant revenue losses (Barr et al. 1977; Teviotdale and Thompson 1999; James and Alley 2004). On the other hand, self-assessment entails an increase in compliance costs for taxpayers, at the very least in terms of time spent complying with their obligations. However, none of the conditions mentioned above – fairness, simplicity and credibility – is easy to meet. Hence, initial moves towards self-assessment were met in many countries with an increased focus on what type of deterrence measures would increase taxpayer compliance (Forest and Sheffrin 2002), following the prevalent theoretical approach of the time (Allingham and Sandmo 1972). By the late 1990s, the focus was shifting to the perceived fairness and complexity of the tax system, increasingly seen as both a direct and indirect obstacle to compliance (Slemrod and Venkatesh 2002; Forest and Sheffrin 2002; Eichfelder and Schorn 2012). Intuitively, a taxpayer who does not understand their tax obligations has a hard time complying with them, and might well decide not to try at all – especially if penalisation is seen as unlikely.

A View of the Lexical–Grammatical Link in Young Latinos With Specific Language Impairment Using Language-Specific and Conceptual Measures

2019 ◽  
Vol 62 (6) ◽  
pp. 1775-1786 ◽  
Author(s):  
Lucía I. Méndez ◽  
Gabriela Simon-Cereijido
Keyword(s):  
Low Income ◽  
Language Impairment ◽  
Specific Language Impairment ◽  
L2 Acquisition ◽  
Cross Sectional ◽  
Specific Language ◽  
Vocabulary Skills ◽  
In The Beginning ◽  
Study Participants ◽  
L1 And L2

Purpose This study investigated the nature of the association of lexical–grammatical abilities within and across languages in Latino dual language learners (DLLs) with specific language impairment (SLI) using language-specific and bilingual measures. Method Seventy-four Spanish/English–speaking preschoolers with SLI from preschools serving low-income households participated in the study. Participants had stronger skills in Spanish (first language [L1]) and were in the initial stages of learning English (second language [L2]). The children's lexical, semantic, and grammar abilities were assessed using normative and researcher-developed tools in English and Spanish. Hierarchical linear regressions of cross-sectional data were conducted using measures of sentence repetition tasks, language-specific vocabulary, and conceptual bilingual lexical and semantic abilities in Spanish and English. Results Results indicate that language-specific vocabulary abilities support the development of grammar in L1 and L2 in this population. L1 vocabulary also contributes to L2 grammar above and beyond the contribution of L2 vocabulary skills. However, the cross-linguistic association between vocabulary in L2 and grammar skills in the stronger or more proficient language (L1) is not observed. In addition, conceptual vocabulary significantly supported grammar in L2, whereas bilingual semantic skills supported L1 grammar. Conclusions Our findings reveal that the same language-specific vocabulary abilities drive grammar development in L1 and L2 in DLLs with SLI. In the early stages of L2 acquisition, vocabulary skills in L1 also seem to contribute to grammar skills in L2 in this population. Thus, it is critical to support vocabulary development in both L1 and L2 in DLLs with SLI, particularly in the beginning stages of L2 acquisition. Clinical and educational implications are discussed.

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