The Dynamics of Power and Trust in the 'Slippery Slope Framework' and its Impact on the Tax Climate
27 Pages Posted: 17 Mar 2012 Last revised: 14 Mar 2017
Date Written: March 16, 2012
According to the Slippery Slope Framework (SSF; Kirchler, Hoelzl, & Wahl, 2008), tax compliance depends on the power of tax authorities and trust in the tax authorities. The framework, however, remains silent on the dynamics between power and trust, i.e., how power and trust increase or decrease each other, and how this affects the tax climate between authorities and taxpayers. The aim of the present paper is to differentiate power into coercive and legitimate power and to differentiate trust into reason-based and implicit trust to explicate the dynamics between power and trust. As a consequence of the described dynamics, the SSF is extended by adding a confidence climate to the antagonistic and service climate and a respective third form of cooperation (committed cooperation). Insights into the dynamics between power and trust may be utilized to change the tax climate from an antagonistic climate into a cooperative climate.
Keywords: power, trust, coercive power, legitimate power, tax behavior
JEL Classification: Fiscal Policy, Policy Making
Suggested Citation: Suggested Citation