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| Martin Halla and Friedrich Schneider |
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| ''Non-Compliance under a Negative Income Tax'' |
| ( 2008, Vol. 8 No.8 ) |
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| In this note we model the individual decision on income underreporting in a system with a negative income tax. We show that a change in the tax rate has opposing effects on the compliance behavior of the poor and the rich. |
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| Keywords: negative income tax |
JEL: H2 - Taxation, Subsidies, and Revenue: General
H3 - Fiscal Policies and Behavior of Economic Agents: General |
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| Manuscript Received : Sep 26 2008 | | Manuscript Accepted : Sep 26 2008 |
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