Tax Evasion and Optimal Environmental Taxes

@article{Liu2012TaxEA,
  title={Tax Evasion and Optimal Environmental Taxes},
  author={Antung Anthony Liu},
  journal={Applied Accounting - Practitioner eJournal},
  year={2012}
}
  • A. Liu
  • Published 14 September 2012
  • Economics
  • Applied Accounting - Practitioner eJournal
This paper introduces a new argument to the debate about the role of environmental taxes in modern tax systems. Some environmental taxes, particularly taxes on gasoline or electricity, are more difficult to evade than taxes on labor or income. When the tax base is shifted in a revenue-neutral manner toward these environmental taxes, the result is a net reduction in the amount of tax evasion. Using a carbon tax as a motivating example, the “tax evasion effect” is shown to sharply reduce the… 

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