An Analysis of Individual Tax Morale for Russia: Before and after Flat Tax Reform

International Business Research 8(1): 60-80 (2015)

21 Pages Posted: 4 Jan 2015

See all articles by Bee Yew

Bee Yew

SBE of Fayetteville State University; Fayetteville State University - School of Business and Economics

Valentin Milanov

Fayetteville State University

Robert W. McGee

Fayetteville State University - Department of Accounting

Date Written: January 2, 2015

Abstract

This paper examines individual tax morale in Russia before and after the introduction of flat tax reform in 2001. The World Values (WVS) and European Values Survey (EVS) are used to compare individual tax morale in 1999, 2006 and 2011. An ordered probit regression model is applied to study the effects of socio-demographic and institutional variables on individual tax morale. A new variable for employment sector that appeared in 2006 and 2011 values surveys is included in our model. The probit regression results revealed significant coefficients for income scale and the employment sector variables with negative marginal effects on tax morale. Socio-demographic variables have varying effects on tax morale while institutional variables are positively related to individual tax morale for the three years. To detect linear trend associations, Mantel-Haenszel hypothesis test results indicate that individual tax morale for Russia has not changed in the years before and after flat tax reform.

Keywords: flat tax, tax reform, Russia, ordered probit regression,tax morale, ethics, tax evasion, employment sector, income level

JEL Classification: C12, C14, C42, D63

Suggested Citation

Yew, Bee and Yew, Bee and Milanov, Valentin and McGee, Robert W., An Analysis of Individual Tax Morale for Russia: Before and after Flat Tax Reform (January 2, 2015). International Business Research 8(1): 60-80 (2015), Available at SSRN: https://ssrn.com/abstract=2544702

Bee Yew (Contact Author)

SBE of Fayetteville State University ( email )

1200 Murchison Road
Fayetteville, NC 28301
United States

Fayetteville State University - School of Business and Economics ( email )

Fayetteville, NC 28301
United States

Valentin Milanov

Fayetteville State University ( email )

1200 Murchison Road
Fayetteville, NC 28301
United States

Robert W. McGee

Fayetteville State University - Department of Accounting ( email )

Fayetteville, NC 28301
United States

HOME PAGE: http://robertwmcgee.com

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