01656cas a2200253 a 4500 AALejournalIMF009750 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451868692 1018-5941 BD-DhAAL BD-DhAAL Papp, Tamas. Tax Rate Cuts and Tax Compliance-The Laffer Curve Revisited / Tamas Papp, Elod Takats. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper shows how tax rate cuts can increase revenues by improving tax compliance. The intuition is that tax evasion has externalities: tax evaders protect each other, because they tie down limited enforcement capacity. Thus, relatively small tax rate cuts, which decrease incentives to evade taxes, can lead to increased revenues through spillovers - creating Laffer effects. Interestingly, tax rate cuts here imply increasing effective taxes. The model is consistent with what happened in Russia, and may provide basis for further thinking about tax rate cuts in other countries. Mode of access: Internet Takats, Elod. IMF Working Papers; Working Paper ; No. 2008/007 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/007/001.2008.issue-007-en.xml IMF e-Library