While Americans may complain about paying taxes, a new working paper from the National Bureau of Economic Research found that the vast majority are honest on their tax returns.
Economists Sara LaLumia of Williams College and James M. Sallee of the University of Chicago investigated whether people decide whether or not to commit tax evasion if broad benefits outweighs a tiny risk of being caught and punished, according to the internet news site the Daily Caller.
LaLumia and Sallee compared data from before and after a 1987 change in the way tax laws required Americans to report their dependent children. The new law required more verification that the children existed.
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