Published on 01 Jul 04
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
This paper tests the degree of accuracy with which Spanish taxpayers assess average and marginal rates of personal income tax (PIT) and value added tax (VAT). To achieve this we used the annual survey of Spanish attitudes to taxation. The results enable us to conclude that, on average, Spanish taxpayers overestimate the average rate of PIT they pay while they underestimate the marginal rate of PIT. As for VAT, most taxpayers overestimate the average tax rate. Moreover, the perception of taxpayers is empirically proven to be a factor determining preferences for the different possible tax reforms, among other variables.
Jose Felix SANZ
Jose is Lecturer in Public Economics
(Universidad Complutense de Madrid, Spain) and Deputy Director of Tax Studies at the Instituto de Estudios Fiscales.
Current at 12 October 2004 Current at 19 November 2004
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Javier is Lecturer in Public Economics (Universidad de Extremadura, Spain) and Deputy Director of Public Expenditure Analysis at the Instituto de Estudios Fiscales.
Current at 3 June 2004 Current at 19 November 2004
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