Trust, Power, and Tax Compliance: Testing the 'Slippery Slope Framework' Among Self-Employed Taxpayers

19 Pages Posted: 17 Jul 2013

See all articles by Christoph Kogler

Christoph Kogler

University of Vienna - Department of Psychology

Stephan Muehlbacher

University of Vienna - Department of Psychology

Erich Kirchler

University of Vienna - Faculty of Psychology

Date Written: July 17, 2013

Abstract

The “slippery slope framework” suggests two main determinants of tax compliance: trust in authorities and power of authorities. When both, trust and power, are low taxpayers aim at maximizing individual payoffs by evading taxes. Increasing power of authorities leads to enforced compliance, whereas boosting trust results in enhanced voluntary compliance. Hence, high compliance can be accomplished either by pronounced trust in authorities or under conditions of strong power of authorities, but the quality of cooperation differs. Testing these assumptions using questionnaire data based on a representative sample of 476 self-employed taxpayers clearly supports the main assumptions of the “slippery slope framework”. In addition, the relation between perceptions of both, procedural justice and voluntary compliance as well as distributive justice and voluntary compliance were found to be mediated by trust. Furthermore, similar effects of both, trust and power were observed with regard to retributive justice and deterrence.

Suggested Citation

Kogler, Christoph and Muehlbacher, Stephan and Kirchler, Erich, Trust, Power, and Tax Compliance: Testing the 'Slippery Slope Framework' Among Self-Employed Taxpayers (July 17, 2013). WU International Taxation Research Paper Series No. 2013 - 05. Available at SSRN: https://ssrn.com/abstract=2294886 or http://dx.doi.org/10.2139/ssrn.2294886

Christoph Kogler (Contact Author)

University of Vienna - Department of Psychology ( email )

Universitaetsstraße 7
Vienna, 1010
Austria

Stephan Muehlbacher

University of Vienna - Department of Psychology ( email )

Liebigg. 5
Vienna, 1010
Austria

Erich Kirchler

University of Vienna - Faculty of Psychology ( email )

Universitaetsstrasse 7
Vienna, A-1010
Austria
+43 1 42 7747332 (Phone)
+43 1 42 7747339 (Fax)

HOME PAGE: http://homepage.univie.ac.at/erich.kirchler

Register to save articles to
your library

Register

Paper statistics

Downloads
637
rank
39,239
Abstract Views
2,721
PlumX Metrics