Cultural Repercussions: Extending Our Knowledge about How Values of Trust and Confidence Influence Tax Structures within Europe
Within a unified Europe that is heading towards ever more harmonization, it is interesting to examine why there exists such diversity in tax regimes among its countries. Is it possible that some of the decisions pertaining to taxation are based on latent cultural aspects? This study, set in a purely European context, seeks to analyze tax variations within Europe through the lens of cultural variations. Specifically, how trust, confidence and equality matter with regard to tax revenues and tax progressivity. Within this regard, we achieved strong results linking trust and confidence to higher tax revenues and higher tax progressivity. That is, where trust among societal members is low and confidence in public institutions is low, regimes opt for low tax revenues and lenient tax rates. It is argued that where mistrust is high, the issue of income distribution between societal members is likely to stay within the private or individual sphere. Conversely, countries with high trust among societal members exhibit higher levels of income distribution by delegating more responsibility to public institutions, reflected in higher tax revenues and more progressive tax structures.
Volume (Year): 1 (2012)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.issbs.si|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 269-304, June.
- Klarsfeld, Alain & Mabey, Christopher, 2004. "Management Development in Europe:: Do National Models Persist?," European Management Journal, Elsevier, vol. 22(6), pages 649-658, December.
- Tobias Koenig & Andreas Wagener, 2010. "Tax Structure and Government Expenditures under Tax Equity Norms," CESifo Working Paper Series 3205, CESifo Group Munich.
- Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2006.
"Does Culture Affect Economic Outcomes?,"
CEPR Discussion Papers
5505, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:isv:jouijm:v:1:y:2012:i:1:p:91-108. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Goran Dakovic)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.