Template-type: ReDIF-Paper 1.0
Author-Name: Andreas M. Fischer
Author-Name-First: Andreas M.
Author-Name-Last: Fischer
Author-Person: pfi23
Author-Name: Lucca Zachmann
Author-Name-First: Lucca
Author-Name-Last: Zachmann
Title: Do the rich pay their taxes early?
Abstract: This paper examines the effects of household income on interest credits from early tax payments. The hypothesis that the richest households from high-income municipalities pay their income taxes early is tested in a demand specification for interest credit for early tax payments. The empirical analysis uses regional data from 170 municipalities in the canton of Zurich from 2007 to 2013. A one standard deviation increase in the ratio for household income between the mean and the 75th percentile increases the ratio of interest tax credit to total taxes by 5%. The finding that high-income households pay their taxes early supports the view that institutional arrangements supporting early tax payments make the (effective) tax system more regressive for high-income households.
Length: 41 pages
Creation-Date: 2018
Contact-Email: forschung@snb.ch
File-URL: https://www.snb.ch/en/publications/research/working-papers/2018/working_paper_2018_08
File-Format: text/html
Number: 2018-08
Classification-JEL: D14, D30, E21, E41, H31
Keywords: Early tax payment, demand for interest credit on early tax payment
Handle: RePEc:snb:snbwpa:2018-08