Skip to content

Journal Article

Progressive taxation and tax morale

Authors

Publication date

Jun 2013

Summary

Due to strong evidence indicating that tax morale affects actual tax-paying behavior, finding the determinants of tax morale could help both to understand and to fight tax evasion. In this paper we analyze the effect of progressive taxation on individual tax morale using a cross-country approach-a research question that has not been investigated in the existing literature. Our theoretical analysis leads to two testable predictions. First, an individual's tax morale is higher, the more progressive the tax schedule is. Second, the positive impact of tax progressivity on tax morale declines with income. In our empirical analysis we make use of a unique dataset of tax progressivity measures, namely the World Tax Indicators, and follow most of the tax morale literature by employing the World Values Survey to measure individual tax morale. Controlling for a wide range of potential confounders, we are able to confirm both hypotheses in our empirical analysis.

Published in

Public Choice

Volume and page numbers

155 , 293 -316

DOI

http://dx.doi.org/10.1007/s11127-011-9848-1

ISSN

16

Subjects

Taxation and Social Attitudes

Links

http://serlib0.essex.ac.uk/record=b1653948~S5

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

#521651


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest