• AEA in the news
  • April 15, 2016

Tax transparency: when less is more

The Economist highlighted papers from the American Economic Journal: Applied Economics and the American Economic Journal: Economic Policy in an article about the promise of tax transparency laws. In Taxes on the Internet: Deterrence Effects of Public Disclosure, the authors find that when Norway made individuals’ income tax available on the internet in 2001, business owners began reporting slightly higher income. In Disclosure by Politicians, the authors find that the countries with more and stronger disclosure requirements for members of parliament tend also to be the countries with higher incomes, more democratic governments, freer press, and less corruption.