Taxation with Mobile High-Income Agents: Experimental Evidence on Tax Compliance and Equity Perceptions
| Autor: | Veronika Grimm, Simeon Schächtele, Sandro Casal |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Statistics and Probability
Schedule Fachbereich Wirtschaftswissenschaften media_common.quotation_subject H26 lcsh:Technology lcsh:Social Sciences Economic inequality Perception 0502 economics and business C91 ddc:330 050207 economics heterogeneous income 050205 econometrics media_common Random allocation Public economics lcsh:T Applied Mathematics 05 social sciences Equity (finance) Public good laboratory experiment optimal taxation tax compliance mobility fairness perceptions lcsh:H Business Statistics Probability and Uncertainty Laboratory experiment Regressive tax |
| Zdroj: | Games Volume 10 Issue 4 Games, Vol 10, Iss 4, p 42 (2019) |
| Popis: | In a laboratory experiment on tax compliance, we model a situation in which high-income taxpayers can leave a tax system that finances a public good. We compare low-income taxpayers&rsquo compliance decisions and equity perceptions across treatments in which they are informed or not informed about the mobility option of high-income taxpayers. This allows us to test if low-income taxpayers regard the mobility option as a rationale for implementing a regressive tax schedule. To investigate if a potential `justification effect&rsquo of the mobility option depends on the causes of income heterogeneity, we also varied whether income was allocated based on relative performance in a prior ability task or at random. Interestingly, although the performance-based allocation itself was judged to be fairer, we observed higher compliance under the random allocation mechanism. However, compliance and equity perceptions did not significantly differ by the information treatment variation, regardless of the source of income inequality. The results indicate that the threat of losing high-income taxpayers&rsquo contributions does not lead low-income taxpayers to view the regressive tax schedule more favorably. This suggests that taking the differential mobility options as given and altering tax schedules accordingly may not be perceived as an adequate policy response. |
| Databáze: | OpenAIRE |
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