Socio-economic Diversity, Social Capital, and Tax Filing Compliance in the United States (2011)
Type of ContentDiscussion / Working Papers
PublisherCollege of Business and Economics, University of Canterbury
University of Canterbury. Department of Economics and Finance
In this paper we present a rare empirical study on the determinants of tax filing compliance in the United States using county and state level data from 2000 to 2006. As well as including explanatory variables identified in the rational compliance framework such as audit and penalty rates, we examine the role of social capital on tax compliance. In particular, we test whether county level heterogeneity in income, language, race and religion can explain variation in filing rates. While several issues are not yet addressed in this preliminary analysis (such as censoring, endogeneity between audit and non-filing rates, and people’s self-selection to county), our preliminary findings are that non-filing rates are falling in the enforcement rate, rising in the penalty rate for income reporting noncompliance, and rising in home-ownership and unemployment rates. Regarding heterogeneity, non-filing rates do not seem to covary with household income inequality or home language fragmentation, but increase with racial fragmentation.
CitationAlm, J., Clark, J., Leibel, K. (2011) Socio-economic Diversity, Social Capital, and Tax Filing Compliance in the United States. Department of Economics and Finance. 47pp..
This citation is automatically generated and may be unreliable. Use as a guide only.
Keywordstax filing compliance; social capital; heterogeneity
ANZSRC Fields of Research38 - Economics::3801 - Applied economics::380115 - Public economics - taxation and revenue
16 - Studies in Human Society::1608 - Sociology::160899 - Sociology not elsewhere classified
Showing items related by title, author, creator and subject.
A Retrospective analysis of the people’s representatives approving Crown levies and appropriations in New Zealand Dixon, K. (University of Canterbury. Department of Accounting and Information Systems, 2010)Ministers responsible for finance portfolios in the governments of many countries around the world stand before their nation’s legislature each year and present on behalf of the governments in question a bill for the ...
Sawyer AJ; Bornman M; Smith G (2018)This paper describes the concept of tax simplification and outlines the need for tax simplification in South Africa (SA). In order to provide potential guidance, the paper provides an overview of what New Zealand (NZ) ...
Sawyer, A.J. (2019)Traditionally taxes (and tax systems) are evaluated using principles that, in many instances, trace back to the work of Adam Smith (namely, equity, certainty, convenience and economy). Added to these principles are those ...