Ira Gang
Rutgers University
Department of Economics
E-mail: gang@economics.rutgers.edu
Item Number: [J44]
Title: Decomposing Revenue Effects of Tax Evasion, Base Broadening
and Tax Rate Reduction (with Arindam Das-Gupta)
Abstract: This paper proposes a method for evaluating the impact of
tax structure changes on tax revenue. The technique consists of decomposing
the gap between actual revenue and potential revenue into components attributable
to changes in (i) the tax rate structure (ii) deductions and (iii) tax evasion.
Our results indicate that, for the Indian reform episode we examine, there
were initial gains which could not be sustained over time. The magnitude of
the gains from the reform were limited and failed to significantly curtail
losses from tax evasion.
Reference: Arindam Das-Gupta and Ira N. Gang, Decomposing Revenue
Effects of Tax Evasion, Base Broadening and Tax Rate Reduction, International
Tax and Public Finance, 7 (2000) 177-94
Co-Author Information:
Arindam Das-Gupta
Indira Gandhi Institute of Development Research, Mumbai, India
E-Mail: oldmonk87@yahoo.com
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