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- Title
Experimental evidence about property tax word aversion.
- Authors
Brunner, Eric J.; Robbins, Mark D.; Simonsen, Bill
- Abstract
A small but growing literature suggests that simply using the word "tax" can create a visceral negative reaction among citizens. We tested tax word aversion using a representative sample of US residents who are randomly placed into experimental conditions and asked parallel questions about their support for services (approval of a tax increase or a revenue increase). The only difference between the two questions is the word "tax." We find that the use of the word "tax" lowers support by about six and eight percentage points for fire and school services, respectively. This direct test of tax word aversion is based on a strong experimental design and a sufficient number of observations (over 4000) that allow for precise impact estimates. Applications For Practice: Tax word aversion is when the word "tax" reduces citizen support for public services.We conduct an experiment that tests tax word aversion by randomly assigning survey respondents to groups presented with identically worded referenda, except one group is faced with the word "tax" and the other with the word "revenue".All else equal, using the word "tax" compared with "revenue" reduces yes votes for fire services by approximately six percentage points and for education services by approximately eight percentage points.Given public goods are collectively consumed and paid for through taxes, tax word aversion could lead to suboptimal levels of services being provided by governments to the extent officials are reluctant to invoke the word "tax". Also, tax word aversion might make it more likely for the public to reject taxes that improve welfare, such as pollution taxes.
- Subjects
PROPERTY tax; AVERSION; TAX administration &; procedure; DIRECT taxation; INTERNAL revenue; CAPITAL gains; FACIAL expression
- Publication
Public Budgeting & Finance, 2021, Vol 41, Issue 4, p50
- ISSN
0275-1100
- Publication type
Article
- DOI
10.1111/pbaf.12284