%0 Journal Article
%T Tax Compliance, Income Distribution and Social Norms
%A Debora Di Gioacchino
%A Fabrizio Patriarca
%J Theoretical Economics Letters
%P 589-595
%@ 2162-2086
%D 2017
%I Scientific Research Publishing
%R 10.4236/tel.2017.73044
%X This paper studies the effect of income inequality on tax evasion.<span \"=\"\"> </span>To discuss the topic, we present a simple model, based on Benabouand
Tirole [1], that incorporates incentives for tax compliance
such as<span \"=\"\"> </span>punishment and fines, intrinsic motivation and
social norms. Since we<span \"=\"\"> </span>consider a regressive system of incentives to
comply, income inequality<span \"=\"\"> </span>increases the value of tax evasion although overall
propensity to<span \"=\"\"> </span>comply is unaffected. In this framework, we consider
the hypothesis<span \"=\"\"> </span>that social norms are group specific as in the case
of social segregation<span \"=\"\"> </span>or status related networks. We show that all the
negative effects of<span \"=\"\"> </span>inequalities are amplified: the difference between
the tax compliance<span \"=\"\"> </span>of the income groups and the value of tax evasion
increase.
%K Tax Evasion
%K Social Norms
%K Income Distribution
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=75574