The influence of tax labeling and tax earmarking on the willingness to contribute: A conjoint analysis
AbstractWe apply conjoint analysis to study the influence of tax labeling and tax earmarking on German taxpayers' willingness to contribute. From a survey based sample we show that labeling and earmarking effects can substantially increase participants' willingness to contribute, which results in a considerable deviation from a pure consumption maximizing behavior. Furthermore, we give an explanation for this effect regarding socio-demographic attributes of German taxpayers. These results explain the variety in tax labels and provide implications for tax policy regarding further reforms of the tax and contribution system: Labeling and earmarking of contributions are important instruments in selling policies and increasing tax revenue. --
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Bibliographic InfoPaper provided by arqus - Arbeitskreis Quantitative Steuerlehre in its series arqus Discussion Papers in Quantitative Tax Research with number 121.
Date of creation: 2011
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Behavioral Taxation; Tax Labeling; Tax Earmarking; Willingness to Contribute; Conjoint Analysis; Perceived Tax Burden;
Find related papers by JEL classification:
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-09-22 (Accounting & Auditing)
- NEP-ALL-2011-09-22 (All new papers)
- NEP-CBE-2011-09-22 (Cognitive & Behavioural Economics)
- NEP-PUB-2011-09-22 (Public Finance)
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