ABSTRACT
Key concepts: exogenous and endogenous growth; bracket creep; income tax indexation; Ramsey criterion; time-consistent policy; commitment; tax compliance; underground economy and tax evasion; borrowing con straint and tax compliance.
Key concepts: exogenous and endogenous growth; bracket creep; income tax indexation; Ramsey criterion; time-consistent policy; commitment; tax compliance; underground economy and tax evasion; borrowing con straint and tax compliance.