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.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
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.:
- Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
- 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.
- Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, Diciembre.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3627. 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: (Klaus Wohlrabe)
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.