Abstract/Summary

Why do people pay their taxes when it seems as though cheating would go unnoticed? Perhaps the reasons stem from unselfish motivations to improve one’s own community. Perhaps people feel that submitting timely tax payments gives them a greater sense of moral and ethical utility than evasion. Taxpayers may be motivated by fair and trustworthy leaders or by a deep appreciation for the challenging process of governmental budgeting. In many developed countries, tax compliance is mandatory. However, the extremely low probability of detection and low penalties can make tax compliance appear more like a choice to many taxpayers. Each year in countries such as the US and the UK, taxpayers choose how honest their tax calculations and remittances will be. In both the US and the UK, variations in the taxpayer demographics may indicate how likely they are to comply with income and property taxes. Outside influences, such as the demographic characteristics of the local and national-level political leaders or increases in citizens’ civic engagement, may also serve as important factors. These essays explore determinants that may have a strong impact on tax compliance, which may lead to a greater understanding of how people make tax compliance decisions. These essays examine determinants such as tax compliance norms, politician gender, and participatory governance to analyze whether changes in these elements lead to increases in compliance rates.