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Taxation Perspectives: Analyzing the Factors behind Viewing Taxes as Punishment—A Comprehensive Study of Taxes as Service or Strain

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  • Hunar Mohammed

    (Doctoral School of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, Páter Károly u. 1, 2100 Gödöllo, Hungary
    College of Law and Administration, International Trade, University of Halabja, Ababaile Village, Halabja 46018, Kurdistan Region, Iraq)

  • Anita Tangl

    (Department of Methodology for Business Analysis, Faculty of Commerce, Hospitality and Tourism, Budapest Business University, Alkotmány utca 9-11, 1054 Budapest, Hungary)

Abstract

This research paper delves into the intricate relationship between taxpayers and taxation systems, seeking to understand the factors influencing individuals’ perceptions of taxes as either a service or a financial burden. The study employed online surveys to collect data from a diverse group of participants, using both quantitative and qualitative research methods. The research findings demonstrate that people’s perceptions of taxes are not solely shaped by economic factors but are also influenced by psychological aspects, government communication, and societal norms. In economically developed countries, citizens tend to have more positive tax perceptions due to the visible benefits of their tax contributions. In contrast, less developed nations often see negative perceptions rooted in the lack of apparent returns on taxes paid. Additionally, the fairness of tax policies and government communication significantly impact how taxes are perceived. This research provides insights for policymakers on how to enhance tax compliance and improve taxpayer–government relations. It suggests that progressive and fair tax policies can lead to higher compliance rates and increased revenue collection. Furthermore, simplifying tax systems and reducing bureaucratic obstacles can make tax compliance more accessible and less burdensome. The study also offers international case studies for best practices that can be adapted to different contexts. This study sheds light on the multifaceted nature of tax perceptions and their impact on economic behavior. It underscores the importance of considering both economic and psychological factors, as well as government policies and communication, in shaping taxpayers’ views on taxation.

Suggested Citation

  • Hunar Mohammed & Anita Tangl, 2023. "Taxation Perspectives: Analyzing the Factors behind Viewing Taxes as Punishment—A Comprehensive Study of Taxes as Service or Strain," JRFM, MDPI, vol. 17(1), pages 1-17, December.
  • Handle: RePEc:gam:jjrfmx:v:17:y:2023:i:1:p:5-:d:1304504
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    References listed on IDEAS

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    1. Timothy Besley & Torsten Persson, 2014. "Why Do Developing Countries Tax So Little?," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 99-120, Fall.
    2. Sue Yong & Peni Fukofuka, 2023. "Accounting, tax compliance and New Zealand indigenous entrepreneurs: a Bourdieusian perspective," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 36(5), pages 1350-1378, January.
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