Do your tax problems make tax evasion seem more justifiable? Evidence from a survey experiment

Sebastian Blesse

European Journal of Political Economy, 2023, vol. 78, issue C

Abstract: Taxpayers often view tax rules and filing processes as complicated. I study whether the perceived tax uncertainty among peers makes tax evasion more acceptable among the general public. I find strong supportive evidence for this hypothesis using a survey experiment and a large representative sample of the German population. Providing randomized information that others are uncertain about how to file their taxable income decreases individual support for tax compliance. This suggests that subjects judge tax evasion less harshly in response to this peer information. Studying related heterogeneous treatment effects, I find that both older and left-wing subjects are more responsive to tax uncertainty of others. Less harsh views on evasion are persistent for very high compliance levels in a follow-up survey.

Keywords: Tax complexity; Support for tax compliance; Survey experiments (search for similar items in EconPapers)
JEL-codes: C90 H26 K42 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:poleco:v:78:y:2023:i:c:s0176268023000095

DOI: 10.1016/j.ejpoleco.2023.102365

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