Abstract
Governments generally have at their disposal two types of tax compliance policies. One set of policy options coerces tax compliance by increasing risks for practicing tax evasion, while a second set of policies emphasizes development of supportive taxpaying values among citizens through service improvement and informational strategies. Tax agencies tend to favor coercive policies, but empirical research suggests that such policies are not in themselves fully adequate to fight tax evasion. Four hypotheses are offered which suggest the utility of service and values based policies and the need for increased investment in those areas of tax administration.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Allingham, Michael G. and Agnar Sandmo, ‘Income Tax Evasion: A Theoretical Analysis,’ Journal of Public Economics 1 (1972), pp. 323–38.
Boulding, Kenneth, A Preface to Grants Economics, New York, Prager, 1981.
Easterly, Lewis A., ‘Public Relations and Information Sharing,’ in Revenue Administration, 1987, Washington, D.C., Federation of Tax Administrators, 1987, pp. 175–79.
Erekson O., Homer and Dennis Sullivan, ‘A Cross-Section Analysis of IRS Auditing,’ National Tax Journal 41 (1988), pp. 175–189.
Etzioni, Amitai, ‘Tax Evasion and Perceptions of Tax Fairness: A Research Note,’ Journal of Applied Behavioral Science 22 (1986), pp. 177–85.
Friedland, Nehemia, ‘A Note on Tax Evasion as a Function of the Quality of Information About the Magnitude and Credibility of Threatened Fines: Some Preliminary Research,’ Journal of Applied Social Psychology 12 (1982), pp. 54–59.
Friedland, Nhemia Shlomo Maital and Aryeh Rutenberg, ‘A Simulation Study of Tax Evasion,’ Journal of Public Economics 10 (1978), pp. 107–16.
Grasmick, Harold and Donald E. Green, ‘Legal Punishment, Social Disapproval and Internalization as Inhibitors of Illegal Behavior,’ Journal of Criminal Law and Criminology 71 (Fall 1980), pp. 325–35.
Grasmick, Harold and W. Scott, ‘Tax Evasion and Mechanisms of Social Control: A Comparison With Grand and Petty Theft,’ Journal of Economic Psychology 2 (1982), pp. 213–30.
Gross, Robert A., ‘Vermont's Enhanced Tax Enforcement and Collection Program,’ in Revenue Administration, 1987, Washington, D.C., Federation of Tax Administrators, 1987, pp. 105–9.
Henry, James S., ‘Noncompliance With U.S. Tax Laws-Evidence on Size, Growth and Composition,’ The Tax Lawyer 37 (Fall 1983), pp. 1–92.
Hite, Peggy A., ‘An Application of Attribution Theory in Taxpayer Noncompliance Research,’ Public Finance 42 (1987), pp. 105–18.
Jackson, Ira ‘Bringing Tax Administration Out of the Bureaucratic Closet,’ Journal of Policy Analysis and Management 5 (Fall 1985), pp. 139–43.
Jackson, Ira ‘Tax Administration,’ in Steven D. Gold, ed., Reforming State Tax Systems, Denver, National Conference of State Legislatures, 1986, pp. 333–46.
Jackson, Ira and Jane P. O'Hern, ‘Managing Change: Reflections on Innovations in the Public Sector,’ New England Journal of Public Policy 2 (Summer–Fall 1986), pp. 31–50.
Kaplan, Steven E. and Philip M. J. Reckers, ‘A Study of Tax Evasion Judgments,’ National Tax Journal 38 (March 1985), pp. 97–102.
Lewis, Alan The Psychology of Taxation, Oxford, Martin Robertson, 1982.
Mason, Robert, ‘A Communications Model of Taxpayer Honesty,’ Law and Policy 9 (July 1987), pp. 246–58.
Mason, Robert and Lyle D. Calvin, ‘Public Confidence and Admitted Tax Evasion,’ National Tax Journal 37 (December 1984), pp. 489–96.
Mason, Robert and Helen M. Lowrey, An Estimate of Income Tax Evasion in Oregon, Survey Research Service, Oregon State University, 1981.
Minnesota, Department of Revenue, Mission/Commitment to Excellence, St. Paul, 1988.
Scholz, John T., ‘Coping With Complexity: A Bounded Rationality Perspective on Taxpayer Compliance,’ National Tax Association, Tax Institute of America Proceedings (1985), pp. 30–38.
Snavely, Keith, ‘Innovations in State Tax Administration,’ Public Administration Review 38 (September/October), pp. 903–910.
Song, Young-Dahl and Tinsley E. Yarbrough, ‘Tax Ethics and Taxpayer Attitudes: A Survey,’ Public Administration Review 38 (September–October 1978), pp. 442–53.
Spicer, Michael W., ‘Civilization at a Discount: The Problem of Tax Evasion,’ National Tax Journal 39 (January 1986), pp. 13–20.
Spicer, Michael W. and Lee A. Becker, ‘Fiscal Inequity and Tax Evasion: An Experimental Approach,’ National Tax Journal 33 (June 1980), pp. 171–75.
Spicer, Michael W. and S. B. Lundstedt, ‘Understanding Tax Evasion,’ Public Finance 31 (1976), pp. 295–305.
Srinivasan, T. N., ‘Tax Evasion: A Model,’ Journal of Public Economics 2 (1973), pp. 339–46.
Thurman, Quint C., Craig St. John and Lisa Riggs, ‘Neutralization and Tax Evasion: How Effective Would A Moral Appeal Be in Improving Compliance to Tax Laws?’ Law and Policy6 (July 1984), pp. 309–27.
Vogel, Joachim, ‘Taxation and Public Opinion in Sweden: An Interpretation of Recent Survey Data,’ National Tax Journal 27 (December 1974), pp. 499–513.
Witte, Ann D. and Diane F. Woodbury, ‘The Effects of Tax Laws and Tax Administration on Tax Compliance: The Case of the U.S. Individual Income Tax,’ National Tax Journal 38 (March 1985), pp. 1–13.
Yankelovich, Skelly and White, Taxpayer Attitudes Survey Washington, D.C., Internal Revenue Service, 1984.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Keith, S. Governmental policies to reduce tax evasion: coerced behavior versus services and values development. Policy Sci 23, 57–72 (1990). https://doi.org/10.1007/BF00136992
Issue Date:
DOI: https://doi.org/10.1007/BF00136992