Citizens' Willingness to Support New Taxes for COVID-19 Measures and the Role of Trust
Lachapelle, Erick, Bergeron, Thomas, Nadeau, Richard, Daoust, Jean-François, Dassonneville, Ruth and Bélanger, Éric, Citizens' Willingness to Support New Taxes for COVID-19 Measures and the Role of Trust (11 January 2021)
44 Pages Posted: 11 Mar 2021
Date Written: January 11, 2021
The COVID-19 public health pandemic saw governments spend trillions of dollars to limit the spread of the COVID-19 virus as well as to soften the economic blow from the shutting down of national economies. Subsequent budget shortfalls raise the question of how governments will pay for the direct and indirect costs associated with the COVID-19 pandemic. In this paper, we study the public’s willingness to contribute through paying a new tax. We find that both generalized social and political trust are associated with a greater willingness to support a COVID-related tax and that generalized social trust in particular attenuates the negative effect of an experimentally manipulated, specified level of tax burden on policy support. These findings entail important implications for the public opinion and tax policies literatures, and also for policymakers.
Keywords: COVID-19, public health, generalized social trust, political trust, economic recovery, tax policy, willingness to pay
JEL Classification: I1, I18, H12, H24, H41
Suggested Citation: Suggested Citation