Who Benefits from Tax Evasion?1

  title={Who Benefits from Tax Evasion?1},
  author={James R. Alm and Keith Finlay},
In this paper, we examine the distributional effects of tax evasion, using results from theoretical, experimental, empirical, and especially the general equilibrium literatures on tax evasion. Much – if not all – of this evidence concludes that the main beneficiaries of successful tax evasion are the tax evaders themselves, with distributional effects that largely favor higher income individuals. However, when general equilibrium adjustments in commodity and factor prices are considered, the… CONTINUE READING