Wednesday, 4 January 2012

Tax and Social Norms

Groups of taxpayers in Minnesota were given four kinds of communication:
- their taxes went to various good works, including education, police protection and fire protection.
- threatened with information about the risks of punishment for noncompliance.
- how they might get help if they were confused about how to fill out their tax forms.
- just that 90% of Minnesotans already complied, in full, with their obligations under the tax law.

Only the last one had a significant effect on tax compliance. The last one improved tax compliance.

Source: Stephen Coleman's report for the State of Minnesota (available here) quoted in Nudge book p 73.

No comments: