Tax Perception - An Empirical Survey

Fochmann, Martin; Kiesewetter, Dirk; Blaufus, Kay; Hundsdoerfer, Jochen; Weimann, Joachim

doi:10.2139/ssrn.1707443

Cited by 14 publications

(9 citation statements)

References 65 publications

(55 reference statements)

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“…An excellent survey is presented in Fochmann et al . (). An example of this literature is De Bartolome (), who shows that many people mistakenly use the average tax rate instead of the marginal tax rate when making investment decisions.…”

Section: Related Literaturementioning

confidence: 97%

The Non‐Equivalence of Labour Market Taxes: A Real‐Effort Experiment

Weber

Schram

2017

The Economic Journal

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Under full rationality, a labour market tax levied on employers and a corresponding income tax levied on employees are equivalent. With boundedly rational agents, this equivalence is no longer obvious. In a real-effort experiment, we study the effects of these taxes on preferences concerning the size of the public sector, subjective well-being, labour supply and on-the-job performance. Our findings suggest that employer-side taxes induce preferences for a larger public sector. Subjective well-being is higher under employer-side taxes while labour supply is lower, at least at the extensive margin. We discuss three mechanisms that may underlie these results.

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Section: Related Literaturementioning

confidence: 97%

The Non‐Equivalence of Labour Market Taxes: A Real‐Effort Experiment

Weber

Schram

2017

The Economic Journal

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“…Experimental studies oriented towards behavioral science relate to the actions of natural persons. They confirm, as has already become clear, that the actual consideration of taxes in decisions often deviates from the neoclassical model of consumption maximization [12] [42]- [44]. In order to explain these deviations, we need hypotheses which substantiate the quasi-nomological hypothesis regarding tax effects.…”

Section: An Evolutionary Framework Of Tax Effects On Financial Decisionsmentioning

confidence: 67%

“…These studies investigate for instance whether participants choose perfectly rational decision criteria or whether they have the necessary knowledge to be able to apply perfectly rational decision criteria. These studies generally prove that the neoclassical rational model of consumption maximization cannot be empirically supported because the actual consideration of taxes in decisions often deviates from this model [12] [42]- [44]. The question arises whether evolutionary quasi-nomological hypotheses of tax effects avoid contradictions with reality and also consistently connect these research results of empirical studies.…”

Section: An Evolutionary Framework Of Tax Effects On Financial Decisionsmentioning

confidence: 99%

Evolutionary Analysis of Tax Law: A Methodological Approach

Schmiel¹

2016

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The present paper conceptualizes a methodology of an evolutionary tax law analysis from a critical rationalist perspective. This methodology has the following characteristics: We interpret tax rules as means to achieve tax goals. Means-end-statements have an ethical and an empirical dimension. The ethical dimension implies that tax goals and tax rules and their secondary effects must be compatible with the aims of market economy regulation. The empirical dimension includes the question if tax goals are realizable and if tax rules cause secondary effects. To answer this question, we need evolutionary hypotheses of tax effects. A quasi-nomological hypothesis regarding the evolutionary effects of taxation is as follows: "If taxation changes the rank order of the relevant decision-making options according to the actors' subjectively rational decision criteria, they decide differently if they take taxes into account than they would if they did not". From an evolutionary point of view, freedom of choice and equality before the law are the contributions of a market economy to the common good. In our opinion, equability of taxation is compatible with the market economy goals "freedom of choice" and "equality before the law". Equability of taxation, however, implies in principle decreasing such decision-making effects of taxation which reduce the explicit tax payment burden (in relative terms). These decision-making effects are designated here as tax avoidance decisions. We need the evolutionary tax effects framework mentioned above in order to develop tax rules which decrease such tax effects. By way of contrast, tax rules that induce or accept tax avoidance decisions conflict with equability of taxation. Such rules are sometimes driven by social goals. Thus, we have to analyze such rules from an evolutionary perspective with regard to their justification, feasibility and proportionality.

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“…A second area in which experiments offer important insights is related to the perception of tax incentives. Overall, experimental studies from both the laboratory and the field suggest that the perception of taxes is substantially distorted (Fochmann et al 2010 survey the earlier evidence), even in stylized settings where the incentives induced by the taxes are relatively easy to understand. The potential impact of distorted tax perceptions might be severe given that most actual tax systems are highly complex and non-linear.…”

Section: Tax Policymentioning

confidence: 84%

The role of experiments for policy design

Werner¹,

Riedl²

2019

Handbook of Research Methods and Applications in Experimental Economics

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Tax Perception - An Empirical Survey

Cited by 14 publications

References 65 publications

The Non‐Equivalence of Labour Market Taxes: A Real‐Effort Experiment

The Non‐Equivalence of Labour Market Taxes: A Real‐Effort Experiment

Evolutionary Analysis of Tax Law: A Methodological Approach

The role of experiments for policy design

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