Is a Tax Amnesty a Good Fiscal Policy? A Review of State Experience in the USA

Luitel, Hari S.; Mahar, Gerry J.

doi:10.2139/ssrn.2234663

Cited by 9 publications

(8 citation statements)

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“…In addition to Arindam et al (1995); Luitel -Mahar (2013); Luitel -Sobel (2007) are in line with our above arguments. Laffer (2003) takes the United States for instance, a federal, state and local tax amnesty would add some $50 billion in the first year and $25 billion over the coming 10 years.…”

Section: Short-term Effect Of Tax Amnesty On Tax Revenuesupporting

confidence: 93%

“…However, as the assessment period gradually approaches to the final day of the assessment period, the probability that tax evaders are exempted from penalties and successfully evade taxes increases. Hence, tax revenue received by the government gradually declined and ultimately converged on a fixed value (some examples are Arindam et al1995;Luitel -Mahar 2013;Luitel -Sobel 2007).…”

Section: Short-term Effect Of Tax Amnesty On Tax Revenuementioning

confidence: 99%

“…Luitel -Sobel 2007 suggested that, in general, if a country declares an amnesty program, it brings the government, at first, temporary revenue augments during the amnesty period, but later, causes a reduction in the revenue. Fisher et al (1989) and Luitel -Mahar (2013) suggested that tax amnesties raise higher tax revenues for the US state treasury in the short term. However, Laborda -Rodrigo (2003) found that amnesties had no effect on tax revenue neither in the short nor the long term.…”

Section: Introductionmentioning

confidence: 99%

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Tax amnesty and secondary tax evasion

Wang

Zhang

2020

Acta Oeconomica

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Though tax amnesties (TAs) are considered as a policy tool to increase revenue for governments, they have generated some puzzles. To solve the puzzles of TA we should not ignore the behavioural aspects of delinquent taxpayers. In this paper, we focus on a relatively neglected but important area of the TA literature. Considering that people who participate in tax amnesty policy (TAP) may not honestly report the whole amounts of evaded tax, thus they commit a secondary tax evasion. We indicate that even considering the risk of abstaining from TA and incurring possible uncertainty of tax evasion penalties, participating in a TA provides a higher level of utility for the delinquent taxpayers. Also, due to a secondary tax evasion usually accompanying with TA, we show that during the initial assessment period of a TAP the tax revenue drastically increases and when the assessment period is approaching the tax revenue stably declines and ultimately converges to a fixed value. Furthermore, we show that if delinquent taxpayers participate in the TAP and the penalties are larger than the expected tax revenue of the government, it increases the tax revenue without reducing the welfare of other taxpayers, so as to achieving Pareto improvement.

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Section: Short-term Effect Of Tax Amnesty On Tax Revenuesupporting

confidence: 93%

Section: Short-term Effect Of Tax Amnesty On Tax Revenuementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Tax amnesty and secondary tax evasion

Wang

Zhang

2020

Acta Oeconomica

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“…Wang & Hseieh (2015) asserted that tax amnesties had no effect on tax revenue whether in the long or short run. Both Fischer et al, 1992;Luitel & Mahar (2013) agreed that tax amnesty could increase revenue in the short run. Although there is tax amnesty, tax evaders may still not participate (Olivella, 1996).…”

Section: Tax Amnestymentioning

confidence: 99%

Measuring Tax Compliance among Small and Medium Enterprises in Nigeria

Aladejebi¹

2018

IJAT

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This study examined the level of tax compliance among owners of small and medium enterprises (SMEs) in Nigeria. Small business is vital to the economy of Nigeria. The sample size for the research was 250 and 223 SME owners responded through the questionnaire distributed. The quantitative method was used in analyzing the data collected. SPSS was used to analyze the data. Findings showed that female SME owners are more tax compliant than male counterparts. There is a need for tax education among SME owners. There is multiple taxations. Tax amnesty can increase the level of tax compliance.

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“…The contact between tax amnesties and state revenue has been empirically be examined (Alm and Beck 1990, Dubin, Graetz, and Wilde 1992, Beck 1993, Luitel andSobel 2007). On the other hand Luitel and Mahar (2013) found that the government did not earn significant revenue with the tax amnesty program [8]. A US state study covering 76 amnesties in 23 years concludes that short-term income is accrued as a result of the country's first amnesty, accompanied by long-term revenue losses [9].…”

Section: Introductionmentioning

confidence: 99%

How the Tax Amnesty Affects the State Revenue Tax Sector in Indonesia

Henna¹,

Fermansyah²,

Sulistiyono³

2019

Proceedings of the the First International Conference on Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Banda

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Tax amnesty be elected by governments in several countries to increase tax revenue. This study was made on the effect of the tax amnesty on the tax revenue of the state tax sector. This research was quantitative research. To collect the data and information obtained, the researcher used secondary data from dashboard tax amnesty and APBN report per July 1, 2016-March 31, 2017. This research used tax amnesty and state revenue of tax sector. Data analysis was done by using simple linear regression analysis with eviews for Window Version 8. The result of this research indicated that tax amnesty had no significant effect to increase tax revenue of state in Indonesia.

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Is a Tax Amnesty a Good Fiscal Policy? A Review of State Experience in the USA

Cited by 9 publications

References 0 publications

Tax amnesty and secondary tax evasion

Tax amnesty and secondary tax evasion

Measuring Tax Compliance among Small and Medium Enterprises in Nigeria

How the Tax Amnesty Affects the State Revenue Tax Sector in Indonesia

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