Download this Paper Open PDF in Browser

Three Essays on Tax Salience: Market Salience and Political Salience

80 Pages Posted: 8 Mar 2011 Last revised: 14 Nov 2012

David Gamage

Indiana University Maurer School of Law

Darien Shanske

University of California, Davis - School of Law

Date Written: March 6, 2011

Abstract

This Article analyzes the literatures on how individuals understand taxation (i.e., tax salience). We evaluate how taxpayers respond to different presentations of tax prices both in their roles as market participants and as voters. We aim to combat naïve notions about tax salience that currently exert a pernicious influence on tax lawmaking. In particular, we argue that it is normatively desirable for governments to reduce tax salience with respect to market decision making, and that there is nothing objectionable about governments reducing tax salience with respect to political decision making.

Keywords: tax salience, taxation, tax, behavioral public finance, behavioral economics, hidden taxes, fiscal illusion

Suggested Citation

Gamage, David and Shanske, Darien, Three Essays on Tax Salience: Market Salience and Political Salience (March 6, 2011). Tax Law Review, Vol. 65, p. 19, 2011. Available at SSRN: https://ssrn.com/abstract=1779382

David Gamage (Contact Author)

Indiana University Maurer School of Law ( email )

211 S. Indiana Avenue
Bloomington, IN 47405
United States

HOME PAGE: http://www.law.indiana.edu/about/people/bio.php?name=gamage-david

Darien Shanske

University of California, Davis - School of Law ( email )

400 Mrak Hall Dr
Davis, CA CA 95616-5201

Paper statistics

Downloads
803
Rank
24,110
Abstract Views
4,761