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The Ends Against the Middle. Attitudes Towards Taxation

Author

Listed:
  • Ana I. Moro Egido

    (Department of Economic Theory and Economic History, University of Granada.)

  • Angel Solano Garcia

    (Department of Economic Theory and Economic History, University of Granada.)

Abstract

Recent tax evasion scandals have brought into question the progressivity of taxation in many EU countries. In this paper we analyze the effect of the concern about tax evasion on people’s attitudes towards taxation in EU countries. We find that concern about tax evasion may produce a U-shaped relationship between an individual’s income and preferences for taxation in line with recent theoretical studies. Moreover, we find that the perceived level of tax evasion, the perceived waste of public resources and the intensity of tax enforcement reduce public support for taxation. In contrast, concern about fairness in tax compliance favours it.

Suggested Citation

  • Ana I. Moro Egido & Angel Solano Garcia, 2015. "The Ends Against the Middle. Attitudes Towards Taxation," ThE Papers 15/03, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:15/03
    as

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    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers15_03.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    attitudes; taxation; tax evasion; multilevel models;
    All these keywords.

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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