Taxing Expats - Instrumental versus Expressive Voting Compared
It is common knowledge that mobile individuals are difficult to tax. Governments accommodate these difficulties by granting special tax reductions to mobile individuals as it is expedient to get some tax revenue from these individuals rather than to lose them as tax payers completely. Taxing according to expediency is, however, criticized by ordinary tax payers who claim that the basic principles of tax equity are consequently violated. Therefore governments have to solve a difficult trade off between the two goals in order to survive. The variables entering in this optimization process remain disguised in the normal case of a representative democracy. In a direct democracy, however, the trade-off between tax expediency and tax equity principles is revealed by voters.In this paper we distinguish between situations where voters vote instrumentally in favour of tax expediency and where voters vote expressively in favour of equity principles. A popular vote in the canton of Zurich of 2009 serves as a natural experiment for testing the instrumental versus expressive voter hypotheses. We find that instrumental voting prevails in small rural municipalities and expressive voting in larger cities. As expressive voters are in majority in the canton, they exert a cross border externality by imposing their will on the majority decisions of the smaller municipalities. This observation may be of a particular importance when, on the federal level, expressive urban voters may impose their will on the voters of rural cantons voting instrumentally.
Volume (Year): 147 (2011)
Issue (Month): IV (December)
|Contact details of provider:|| Postal: |
Phone: +41 (0)44 631 32 34
Fax: +41 (0)44 631 39 01
Web page: http://www.sjes.ch
More information through EDIRC
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.:
- Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
- Tyran, Jean-Robert, 2004.
"Voting when money and morals conflict: an experimental test of expressive voting,"
Journal of Public Economics,
Elsevier, vol. 88(7-8), pages 1645-1664, July.
- Jean-Robert Tyran, 2002. "Voting when Money and Morals Conflict - An Experimental Test of Expressive Voting," University of St. Gallen Department of Economics working paper series 2002 2002-07, Department of Economics, University of St. Gallen.
- Keen, Michael, 2001. "Preferential Regimes Can Make Tax Competition Less Harmful," National Tax Journal, National Tax Association, vol. 54(n. 4), pages 757-62, December.
- Sinn, Hans-Werner, . "The New Systems Competition: YRJÖ Jahnsson Lectures," Monographs in Economics, University of Munich, Department of Economics, number 19614.
- Russell S. Sobel & Gary A. Wagner, 2004. "Expressive Voting and Government Redistribution: Testing Tullock's `Charity of the Uncharitable'," Public Choice, Springer, vol. 119(1_2), pages 143-159, 04.
- Carter, John R & Guerette, Stephen D, 1992. " An Experimental Study of Expressive Voting," Public Choice, Springer, vol. 73(3), pages 251-60, April.
When requesting a correction, please mention this item's handle: RePEc:ses:arsjes:2011-iv-6. 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: (Peter Steiner)
If references are entirely missing, you can add them using this form.