My Taxes Are Too Darn High: Why Do Households Protest Their Taxes?
137 Pages Posted: 2 Nov 2020 Last revised: 3 Jul 2023
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My Taxes Are Too Darn High: Why Do Households Protest Their Taxes?
My Taxes are Too Darn High: Why Do Households Protest Their Taxes?
Date Written: September 12, 2020
Abstract
In the United States and many other countries, taxpayers can file a protest to legally reduce their property taxes. While tax protests can provide a unique opportunity to study the (un)willingness to pay taxes, they have received little attention from researchers. To fill that gap, we study what motivates households to protest their property taxes. Using a field experiment and a quasi-experiment, we show that both expected savings and filing frictions play significant roles. We estimate the magnitude of filing frictions using a money metric. We also discuss how low-cost interventions targeted at disadvantaged groups can mitigate existing economic and racial disparities in the system of tax appeals.
Keywords: taxes, protest, appeal
JEL Classification: C93, H26, K34, K42, Z13
Suggested Citation: Suggested Citation