How are They Spending my Taxes? Tax Compliance and Citizens' Interest in Politics

In: Dawson , P & Jones , P 2010 ' How are They Spending my Taxes? Tax Compliance and Citizens' Interest in Politics ' Bath Economics Research Working Papers , no. 11/10 , Department of Economics, University of Bath , Bath, U. K.

Abstract

In neoclassical economics, individuals are assumed to perceive tax payments as commensurate with any other payment. This paper challenges this assumption. Individuals are more likely to identify with the community when they pay a higher share of their income in tax and when compliance is also an expression of civic duty. An analysis of questionnaire responses from over 20 countries suggests that citizens take a greater interest in politics when they are more tax compliant.