Threshold analysis regarding the optimal tax rate and tax evasion. Empirical evidence from Taiwan.

ABSTRACT: For a long time, governments of all countries have attached great importance to the development of underground economic activities. The reason is that the characteristics of the underground economy are hidden and the information disclosure is not sufficient, which not only distorts the economic data indicators, but more importantly, the existence of the underground economy has led to the loss of a large amount of tax base, affecting the long-term economic development of the country. Whether raising the tax burden rate boosts the tax revenue or expand the scale of the underground economy. In this paper, we use Kuznet Tax Curve (KTC) method to analyze the relationship between GDP and TTR/DTR/ITR. We find that the tax base erosion rate of indirect tax is lower than that of direct tax. In addi

SUBMITTER: Wang YK 

PROVIDER: S-EPMC10065287 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature