Tax evasion by the wealthy: Measurement and implications

Grant description:

Measuring inequality is critical to understanding the nature of the challenge and its effects. This project aims to improve measurement of wealth inequality by understanding the extent to which tax evasion by the wealthy affects inequality measurements that rely on tax records. The authors combine administrative data on tax compliance, including audit results and the results of voluntary disclosure programs, and data leaked from financial and legal entities in recent years to explore the prevalence and scope of tax evasion by the wealthy. The researchers will use the improved estimates of tax evasion by the wealthy to construct revised estimates of income and wealth inequality in the United States.