Wealth surveys suffer from the 'missing rich' problem. This paper proposes a new method to improve representativeness by calibrating the survey’s income distribution using income tax data.

Recently published in @itaxjournal.bsky.social

"Wealth survey calibration using income tax data" by Daniel Kolář

Available at: rdcu.be/evkMu

Donald Trump killed the OECD’s 2-Pillar reform of international corporate taxation. The Achilles heel of Pillar 1 has been the need for a Multinational Tax Convention. Instead, the reform this paper proposes extends Article 12B of the UN Model Tax Convention.

Recently published in @itaxjournal.bsky.social

"Residual profit splitting: a theory-based approach to tax multinationals" by Wolfram F. Richter

Available at: rdcu.be/euxad

Pillar 1 Amount A reallocates taxing rights on the largest/most profitable MNEs based on final consumers' location. In 2022, it would yield €10.9B. High-income countries gain the most while tax havens bear the brunt of the cost. Net benefits compared to DSTs are ambiguous.

Recently published in @itaxjournal.bsky.social

"Tax revenue from Pillar One Amount A: country-by-country estimates" Mona Barake & Elvin Le Pouhaër

Available at: rdcu.be/eujVD

We show how marital sorting in Switzerland offsets parts of the tax system’s redistributive effect - intensifying income inequality.

Recently published in @itaxjournal.bsky.social

"Tax redistribution offset? Effect of marital choices on income inequality" by Melanie Häner-Müller, Michele Salvi & Christoph A. Schaltegger

Available at: rdcu.be/et416

Many countries have given firms in multi-sided markets preferential tax treatment in the form of lower value added tax rates or even exemption from commodity taxation to stimulate their sales. In this paper we explain why this policy might be counter-productive and reduce sales.

Recently published in @itaxjournal.bsky.social

"Taxation and multi-sided platforms: a review" by Hans Jarle Kind & Guttorm Schjelderup

Available at: rdcu.be/etAL5

What drives support for higher taxes in Mexico? Information about eliminating corruption or improving public health raises willingness to pay, but not support for tax progressivity. The gap between inequality awareness and redistributive action persists.

Recently published in @itaxjournal.bsky.social

"A randomized intervention to gauge preferred tax rates and progressivity" Raymundo M. Campos-Vazquez & Samuel D. Restrepo-Oyola

Available at: rdcu.be/eteVD

This study shows Finnish firm owners avoid higher dividend tax brackets by retaining earnings in the firm, strongly incentivized by the tax schedule, and via income-shifting between wages and dividends. Experienced and lower-income owners indicate higher tax base elasticities.

Recently published in @itaxjournal.bsky.social

"Tax planning and investment responses to dividend taxation" by Aliisa Koivisto

Available at: rdcu.be/ehI4Y

We propose a hybrid national accounts (NA)–macroeconometric approach to estimate underground, informal, and illegal economies in 22 European countries (2000–2020), bridging the gap between the demand for data on informality and the limited availability of NA-based estimates.

Recently published in @itaxjournal.bsky.social

"Integrating national accounting and macroeconomic approaches to estimate the underground, informal, and illegal economy in European countries" by Roberto Dell’Anno

Available at: rdcu.be/ehob8

Mandatory electronic cash registers (ECR) in Sweden raised reported revenues by 4%, but the effect faded within months—firms adapted quickly to continue underreporting. #TaxCompliance #ECR

Recently published in @itaxjournal.bsky.social

"Effects of electronic cash registers on reported revenue" by Per Engström @perklasengstrom.bsky.social, Johannes Hagen, Alireza Khoshghadam & Andrea Schneider

Available at: rdcu.be/ehfwU

#EvidenceBasedPolicy relies on solid evaluations of policy effectiveness. We quantify the findings of #EUCohesionPolicy evaluations and show that these do not square with impact estimates of academics. Misaligned incentives or institutional frictions explain this divergence.

Recently published in @itaxjournal.bsky.social

"Evidence-based policy or beauty contest? An LLM-based meta-analysis of EU cohesion policy evaluations" by Zareh Asatryan, Carlo Birkholz & Friedrich Heinemann

Available at: rdcu.be/egWr2

📢ITAX is now accepting short papers!

Check out the details here: link.springer.com/collections/...

We look forward to your submissions.

Can taxpayer education improve compliance? Evidence from Rwanda shows that training new taxpayers significantly increases filing, reduces zero-tax reporting, and boosts tax due. Effects persist over time, driven by lower compliance costs and better tax knowledge.

Recently published in @itaxjournal.bsky.social :

"Teach to comply? Evidence from a taxpayer education program in Rwanda" by Giulia Mascagni (@giuliamascagni.bsky.social), Fabrizio Santoro & Denis Mukama

Available at: rdcu.be/ecb4w

CbCR increases transparency on the global activities of MNEs and can raise effective tax rates of MNEs. But some companies avoid the reporting requirement with private and tax-aggressive firms showing the strongest avoidance response.

Recently published in @itaxjournal.bsky.social :

"Regulatory avoidance responses to private Country-by-Country Reporting" by Felix Hugger

Available at: rdcu.be/ebBt2

Multinational firms' tax avoidance has been observed, but firms' decisions on entry mode for foreign markets has been often ignored. This paper theoretically shows a firm prefers cross-border M&A to greenfield FDI when transfer pricing regulation is loose.

Recently published in @itaxjournal.bsky.social :

"Attractive target for tax avoidance: trade liberalization and entry mode" by Hirofumi Okoshi

Available at: rdcu.be/ebgIX

The new team would like to thank David R. Agrawal (@davidragrawal.bsky.social), who is staying on as editor-in-chief for an additional term, for helping with a smooth transition!

📢Announcement (pt.2): We would like to welcome new Editors-in-Chief: Katarzyna Bilicka (@katarzynabilicka.bsky.social), Thiess Buettner and Jing Xing and new Policy Watch Editors: Arun Advani and Philipp Dörrenberg.

📢Announcement: At the end of last year, Ronald B. Davies (
@ronbdavies.bsky.social) and Nadine Riedel stepped down as ITAX Editors-in-Chief. We want to thank them for all they did to solidify ITAX's position as one of the leading journals in the field of public economics!