Discussion paper / School of Business & Economics ; 2010,12 : FACTS
Tax Labeling; Tax Earmarking; Perceived Tax Burden; Behavioral Taxation; Non Rational Behavior; Conjoint Analysis; Education Allowance; Contribution System; Health Insurance
336 Public finance
In this paper we apply conjoint analysis as an empirical method to study the influence of tax
labeling and tax earmarking on the perceived tax burden. As reference for the individual
behavior we use the model of a rational utility maximizer described by the economic theory.
We determine a significant influence of the labeling and the earmarking of taxes. We can
show that the labeling and earmarking effect can decrease the perceived tax burden for the test
persons which results in a deviation from a (rational) consumption maximizing behavior.
These results give important implications for tax policy regarding further reforms of the tax
and contribution system.
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