Tax evasion, labor market effects, and income distribution

Alm, James

doi:10.15185/izawol.91

Cited by 8 publications

(5 citation statements)

References 12 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The ratio of value added to the total resident population it interferes with the market mechanisms that sustain competition, thereby generating a large array of negative economic consequences (Slemrod 2007;Alm 2014).…”

Section: Authors' Elaborations On Istat Datamentioning

confidence: 99%

Tax evasion and inequality: some theoretical and empirical insights

et al. 2021

View full text Add to dashboard Cite

Section: Authors' Elaborations On Istat Datamentioning

confidence: 99%

Tax evasion and inequality: some theoretical and empirical insights

et al. 2021

View full text Add to dashboard Cite

“…Tax non-compliance also leads to unfairness between those who comply with tax law and those who do not comply with tax law by shifting the tax burden to the first group and thereby generating a motive for further non-compliance (Feinstein, 1991). It causes inadequacy in the production of businesses, as they try to stay small to facilitate non-compliance (Nur-Tegin, 2008), and change resources to non-productive activities such as establishing financial subsidiaries to cover up non-compliance (Alm, 2014;Slemrod, 2007). Non-compliance can also lead to the retardation of economic growth, as the capacity of countries to provide appropriate public goods, infrastructure and the development of human capital is slowed down (Johnson et al, 2000).…”

Section: Role Of Patriotism 389mentioning

confidence: 99%

Moderating role of patriotism on sales tax compliance among Jordanian SMEs

Alshira’h

Abdul-Jabbar

2020

IMEFM

View full text Add to dashboard Cite

Purpose The purpose of this paper is to investigate the impact of tax audit, tax rate and tax penalty on sales tax compliance and examine the moderating effect of patriotism on the associations between tax audit, tax rate and tax penalty with sales tax compliance among Jordanian manufacturing small- and medium-sized enterprises (SMEs). Design/methodology/approach In this study, 660 questionnaires were distributed by using systematic random sampling to manufacturing SMEs in Jordan, after which a total of 385 useable questionnaires were deemed suitable for analysis. Partial least squares structural equation modelling (PLS-SEM) was used to validate the measurement model and structural model and the predictive relevance of the study’s model. Findings The findings showed that tax audit and tax penalty were positively associated with the level of sales tax compliance, whereas tax rate was insignificantly associated with sales tax compliance. They also demonstrated the moderating significant effect of patriotism on the relationship between tax penalty, tax audit and tax rate with sales tax compliance. Research limitations/implications Tax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen eligible SMEs to comply to further boost their sales collections. Originality/value This study extends the deterrence theory in the context of sales tax compliance by proposing the moderating effect of patriotism in the deterrence theory on sales tax compliance among SMEs. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended deterrence theory with patriotism as a moderating variable as well as its implications for theory and practice was also discussed.

show abstract

“…Since, tax avoidance reduces the total tax revenues, then "tax burden" on "honest" tax payers are expected to go up 8 in order to cover the tax revenue generated gap. Consequently, this tax burden will be at the cost of income distribution (Georgiou, 2013c;Alm, 2014). In other words, only "honest" tax payers will pay this increased tax burden, which will cause a further reduction in their disposable income and finally income distribution will be worse than before.…”

Section: Shadow Economy's Impact On Income Distributionmentioning

confidence: 99%