Does Tax Choice Increase Tax Compliance? A Cross-Cultural Study

Economic inequality, a growing phenomenon in most OECD countries, can be tackled through taxation, yet evasion remains a massive problem, impeding resources’ redistribution. In this context, investigating which communication strategies increase citizens’ tax compliance is crucial. Literature suggests that taxpayers’ compliance can be enhanced by involving citizens in the process of choosing how to allocate tax money to public sectors, a task that is generally reserved to parliaments. However, what factors could explain this effect remains unclear. In Study 1, we investigate the relationship between choice-based taxes and compliance in different cultural contexts across the EU. In Study 2, we experimentally test the role of tax choice on tax compliance across countries, exploring possible cultural differences and explanatory variables. 

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