Identifying and Mitigating Taxpayer Noncompliance
Posted: 22 Aug 1998
This study examines data from a state-wide telephone survey to describe demographic factors associated with aggressive tax paying attitudes. Taxpayer compliance literature is merged with literature from social control theory, moral reasoning, and prospect theory to posit interactive relationships. Although females without college degrees tended to be compliant, males without college degrees generally were noncompliant. In contrast, males with college degrees had a tendency to comply while females with a college degree tended not to comply. The aggressive behavior of college-educated females is prevalent among those with high incomes. The aggressive behavior of males without college degrees is magnified for those who usually have a balance due at tax filing time. After measuring their attitude toward taxpayer compliance, subjects who were not in the control group received either a brief moral ploy or a scenario regarding how much taxes the wealthy pay. The aggressive high income, female graduates became a more compliant group when given the moral scenario, and the aggressive nondegree males with tax due balances became compliant when given the information about the amount of taxes paid by the wealthy.
JEL Classification: H26
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