Tax systems are often criticized for being overly complex, leading some countries to offer simplified regimes to some taxpayers. Using panel data on French income tax returns, we show that simplified regimes for the self-employed create substantial bunching just below their eligibility thresholds. This bunching in turn is driven not only by a pure taste for simplicity but also by tax evasion. We then develop a structural model to quantify the relative importance of these two motives. Our estimates reveal a significant preference for simplicity\u2013valued at 49 to 495 euros annually per self-employed worker\u2013alongside a sizable evasion elasticity.<\/p>","protected":false},"excerpt":{"rendered":"
Tax systems are often criticized for being overly complex, leading some countries to offer simplified regimes to some taxpayers. Using panel data on French income tax returns, we show that simplified regimes for the self-employed create substantial bunching just below their eligibility thresholds. This bunching in turn is driven not only by a pure taste […]<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":true},"thematique":[132,131],"type-de-publication":[45],"class_list":["post-433","publication","type-publication","status-publish","hentry","thematique-entrepreneurship","thematique-taxation","type-de-publication-working-paper"],"acf":[],"yoast_head":"\n