Outgroup Bias and the Unacceptability of Tax Fraud

Abstract

In countries with well-developed welfare state systems, it is often claimed that racial or ethnic minorities impose a heavy burden on social assistance programs without contributing to public goods. In this study, we consider the attitudinal effects of anecdotal reports of tax cheating by minorities. We conduct survey experiments in France and the United States to assess if people react more harshly to tax fraud perpetrated by members of a minority group rather than the majority group. We find no evidence that minority status affects judgments and perceptions about tax fraud, including among those on the right end of the political spectrum. Tax fraud is considered unacceptable regardless of the culprit’s origin.