Taxpayers in Greece React Strongly to Changes in Tax Rates
The article examines how taxpayers in Greece respond to changes in tax rates. By using quantile regression, the researchers analyzed how different income groups report their income to tax authorities. They found that higher income individuals are more likely to hide income to avoid taxes, leading to potential revenue losses for the government. This suggests that tax policies should consider income inequality and the behavior of taxpayers across different income levels to improve tax collection efficiency.