Tax Administration and Tax Systems

Joel B. Slemrod
2015 Social Science Research Network  
The IEB research program in Tax Systems Analysis aims at promoting high quality research in the field of taxation, taking into account not only the traditional approach to optimal taxation, but also administrative issues and the decentralization or globalization context. The ultimate aim of the program is to generate socially useful knowledge in this field. Special emphasis is put on empirical research, and on the analysis of the Spanish Tax System. The program enjoys the support from the
more » ... port from the IEB-Foundation. ABSTRACT: This is a review of the so-called "Optimal tax systems" approach to the economic analysis of taxation. This approach acknowledges the bunch of instruments the public sector has to collect revenues, but also the multiple responses of taxpayers to them. In a way, this is a more realistic approach to taxation, and so should provide reliable guides to action. MAIN RESULT: It stresses the importance of a Tax-systems approach in contrast with the tradition optimal taxation approach. This approach consists of three blocks: multiple sources of cost of taxation (compliance, administrative and deadweight loss), multiple responses to taxes (not only behavioral) and a bunch of instruments (not only statutory parameters). The future of this integrated approach to taxation will be very much influenced by the foreseen information revolution. JEL Codes: H20
doi:10.2139/ssrn.2958808 fatcat:x4carrtyengqrgh3kosq5ec6x4