Taxing higher incomes: what makes the high-income earners consent to more progressive taxation in Latin America?

Berens, Sarah / Armin von Schiller
Externe Publikationen (2017)

in: Political Behavior 39 (3), 703-772

DOI: 10.1007/s11109-016-9376-2
Information

When do high-income earners get ‘on board’ with the fiscal contract and accept paying a larger share of the tax burden? Progressive taxes perform particularly poorly in developing countries. We argue that the common opposition of the affluent to more progressive taxation is not merely connected to administrative limitations to coercively enforce compliance, but also to the uncertainty that high-income earners associate with the returns to taxes. Because coercion is not an option, there is a need to convince high-income earners to ‘invest’ in the public system via taxes. Trust in institutions is decisive for the fiscal contract. Expecting that paid contributions will be used in a sensible manner, high-income earners will be more supportive of progressive income taxation. We study tax composition preferences of a cross-section of Latin American countries using public opinion data from LAPOP for 2012. Findings reveal that higher levels of trust in political institutions strongly mitigate the opposition of the affluent towards more progressive taxation.


Über den Autor

Schiller, Armin von

Politikwissenschaftler

Schiller

Weitere Expertinnen/Experten zu diesem Thema

Berensmann, Kathrin

Ökonomin 

Breuer, Anita

Politikwissenschaftlerin 

Dafe, Florence

Sozialwissenschaftlerin 

El-Haddad, Amirah

Ökonomin 

Haldenwang, Christian von

Politikwissenschaftler 

Herrfahrdt-Pähle, Elke

Volkswirtin 

Houdret, Annabelle

Politikwissenschaftlerin 

Laudage, Sabine

Ökonomin 

Leininger, Julia

Politikwissenschaftlerin 

Müngersdorff, Maximilian

Sozialwissenschaftler 

Roll, Michael

Soziologe 

Schoderer, Mirja

Umweltwissenschaftlerin 

Sommer, Christoph

Ökonom 

Stoffel, Tim

Politikwissenschaftler 

Trautner, Bernhard

Politikwissenschaftler 

Wehrmann, Dorothea

Soziologin