Abstract

This paper examines the behavioral aspects of taxation and their implications for decision-making, focusing on tax policies, tax misperception, and the role of social norms in shaping taxpayer behavior. Drawing on experimental studies and behavioral models, the research explores how tax-related biases, such as tax aversion and framing effects, influence risky investment decisions. It also delves into the impact of tax morale and social reciprocity on compliance, especially in the context of policy measures aimed at managing economic disruptions such as the COVID-19 pandemic. The findings provide insights into the interplay between tax policy design, public perception, and taxpayer behavior, emphasizing the importance of behavioral economics in shaping tax compliance strategies.

Keywords

  • Tax policy
  • behavioral taxation
  • tax misperception
  • tax morale
  • tax aversion

References

  1. Ackermann, H., Fochmann, M., & Wolf, N. (2016). The effect of straight-line and accelerated depreciation rules on risky investment decisions—An experimental study. International Journal of Financial Studies, 4(4), 19. https://doi.org/10.3390/ijfs4040019
  2. Alm, J., Blaufus, K., Fochmann, M., Kirchler, E., Mohr, P. N. C., Olson, N. E., & Torgler, B. (2020). Tax policy measures to combat the SARS-CoV-2 pandemic and considerations to improve tax compliance: A behavioral perspective. FinanzArchiv, 76(4), 396–428. https://doi.org/10.1628/fa-2020-0014
  3. Blaufus, K., Chirvi, M., Huber, H.-P., Maiterth, R., & Sureth-Sloane, C. (2022). Tax misperception and its effects on decision making – Literature review and behavioral taxpayer response model. European Accounting Review, 31(1), 111–144.
  4. Blaufus, K., & Möhlmann, A. (2012). Security returns and tax aversion bias: Behavioral responses to tax labels. arqus Discussion Paper, 133.
  5. Chugunova, M., Nicklisch, A., & Schnapp, K.-U. (2022). Redistribution and production with a subsistence income constraint: A real-effort experiment. FinanzArchiv, 78(1–2), 208–238.
  6. Dörrenberg, P., & Peichl, A. (2018). Tax morale and the role of social norms and reciprocity: Evidence from a randomised survey experiment. CESifo Working Paper Series, 7149.
  7. Eberhartinger, E., Speitmann, R., Sureth-Sloane, C., & Wu, Y. (2022). How does trust affect concessionary behavior in tax bargaining? FinanzArchiv, 78(1–2), 112–155.
  8. Fahr, R., Janssen, E., & Sureth-Sloane, C. (2014). Can tax rate changes accelerate investment under entry and exit flexibility? Insights from an economic experiment. WU International Taxation Research Paper Series, 2014-05. papers.ssrn.com
  9. Fochmann, M., Hemmerich, K., & Kiesewetter, D. (2016). Intrinsic and extrinsic effects on behavioral tax biases in risky investment decisions. Journal of Economic Psychology, 56, 218–231.
  10. Fochmann, M., & Wolf, N. (2019). Framing and salience effects in tax evasion decisions – An experiment on underreporting and overdeducting. Journal of Economic Psychology, 72, 260–277.
  11. Hundsdoerfer, J., & Matthaei, E. K. (2020). Gender discriminatory taxes, fairness perception, and labour supply. FACTS Discussion Paper, 2020/6.
  12. Kasper, M., & Alm, J. (2022). Does the “bomb-crater” effect really exist? Evidence from the laboratory. FinanzArchiv, 78(1–2), 87–111.
  13. Torgler, B. (2022). Behavioral taxation: Opportunities and challenges. FinanzArchiv, 78(1–2), 5–43.