How Does the Progressivity of Taxes and Government Transfers Impact People’s Willingness to Pay Tax? : Experimental Evidence across Developing Countries

This paper examines how the progressivity of taxes and government transfers impacts people’s willingness to pay tax through a randomized survey experiment with over 30,000 respondents across eight developing countries. Respondents increased (decrea...

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Main Author:	Hoy, Christopher
Format:	Working Paper
Language:	English English
Published:	World Bank, Washington, DC 2022
Subjects:	POLITICAL ECONOMY PUBLIC FINANCE REDISTIBUTION TAX COMPLIANCE RANDOMIZED EXPERIMENT CASH TRANSFER IMPACT PROGRESSIVE TAXATION TAX DODGING TAX LAW
Online Access:	http://documents.worldbank.org/curated/en/099819509072218680/IDU0aaee5bc5034b5041d80901c0e9d06c8ad905 http://hdl.handle.net/10986/37987

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recordtype	oai_dc
spelling	okr-10986-379872022-09-13T05:10:36Z How Does the Progressivity of Taxes and Government Transfers Impact People’s Willingness to Pay Tax? : Experimental Evidence across Developing Countries Hoy, Christopher POLITICAL ECONOMY PUBLIC FINANCE REDISTIBUTION TAX COMPLIANCE RANDOMIZED EXPERIMENT CASH TRANSFER IMPACT PROGRESSIVE TAXATION TAX DODGING TAX LAW This paper examines how the progressivity of taxes and government transfers impacts people’s willingness to pay tax through a randomized survey experiment with over 30,000 respondents across eight developing countries. Respondents increased (decreased) their willingness to pay taxes when they received accurate information that taxes in their country are progressive (not progressive). These effects were predominantly driven by respondents in cases where the information they received was counter to their prior beliefs and/or consistent with their preferences. These results suggest changes in policies that increase (decrease) the progressivity of tax systems may also lead to increases (decreases) in tax compliance. 2022-09-12T12:31:25Z 2022-09-12T12:31:25Z 2022-09 Working Paper http://documents.worldbank.org/curated/en/099819509072218680/IDU0aaee5bc5034b5041d80901c0e9d06c8ad905 http://hdl.handle.net/10986/37987 English en Policy Research Working Papers;10167 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English English
topic	POLITICAL ECONOMY PUBLIC FINANCE REDISTIBUTION TAX COMPLIANCE RANDOMIZED EXPERIMENT CASH TRANSFER IMPACT PROGRESSIVE TAXATION TAX DODGING TAX LAW
spellingShingle	POLITICAL ECONOMY PUBLIC FINANCE REDISTIBUTION TAX COMPLIANCE RANDOMIZED EXPERIMENT CASH TRANSFER IMPACT PROGRESSIVE TAXATION TAX DODGING TAX LAW Hoy, Christopher How Does the Progressivity of Taxes and Government Transfers Impact People’s Willingness to Pay Tax? : Experimental Evidence across Developing Countries
relation	Policy Research Working Papers;10167
description	This paper examines how the progressivity of taxes and government transfers impacts people’s willingness to pay tax through a randomized survey experiment with over 30,000 respondents across eight developing countries. Respondents increased (decreased) their willingness to pay taxes when they received accurate information that taxes in their country are progressive (not progressive). These effects were predominantly driven by respondents in cases where the information they received was counter to their prior beliefs and/or consistent with their preferences. These results suggest changes in policies that increase (decrease) the progressivity of tax systems may also lead to increases (decreases) in tax compliance.
format	Working Paper
author	Hoy, Christopher
author_facet	Hoy, Christopher
author_sort	Hoy, Christopher
title	How Does the Progressivity of Taxes and Government Transfers Impact People’s Willingness to Pay Tax? : Experimental Evidence across Developing Countries
title_short	How Does the Progressivity of Taxes and Government Transfers Impact People’s Willingness to Pay Tax? : Experimental Evidence across Developing Countries
title_full	How Does the Progressivity of Taxes and Government Transfers Impact People’s Willingness to Pay Tax? : Experimental Evidence across Developing Countries
title_fullStr	How Does the Progressivity of Taxes and Government Transfers Impact People’s Willingness to Pay Tax? : Experimental Evidence across Developing Countries
title_full_unstemmed	How Does the Progressivity of Taxes and Government Transfers Impact People’s Willingness to Pay Tax? : Experimental Evidence across Developing Countries
title_sort	how does the progressivity of taxes and government transfers impact people’s willingness to pay tax? : experimental evidence across developing countries
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/en/099819509072218680/IDU0aaee5bc5034b5041d80901c0e9d06c8ad905 http://hdl.handle.net/10986/37987
_version_	1764488262018138112

How Does the Progressivity of Taxes and Government Transfers Impact People’s Willingness to Pay Tax? : Experimental Evidence across Developing Countries

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