What are the socioeconomic and demographic factors that impact the tax culture and tax collection in
Searched over 200M research papers
Research Analysis by Consensus
Consensus Meter
Introduction
The study of socioeconomic and demographic factors impacting tax culture and tax collection is crucial for understanding the dynamics of tax compliance and evasion. Various research papers have explored how these factors influence taxpayer behavior, particularly in different cultural and economic contexts.
Key Insights
-
Institutional and Cultural Factors:
- Cultural values such as individualism, achievement orientation, and assertiveness significantly influence tax evasion behaviors across different countries.
- Weak institutions, fragmented political systems, and lack of transparency contribute to lower tax revenue in developing countries.
-
Demographic Variables:
- Demographic factors such as gender, age, education, and income level impact attitudes towards tax evasion. Women, older individuals, less educated, and poorer people are generally more opposed to tax evasion .
- In Australia, demographic variables like age, gender, and income level have statistically significant relationships with attitudes towards tax evasion.
-
Non-Economic Factors:
- In Vietnam, non-economic factors such as the possibility of tax inspection, social norms, tax knowledge, personal norms, perception of tax system fairness, and tax service quality significantly influence voluntary tax compliance among SMEs.
-
Trust and Tax Culture:
- High levels of institutional trust correlate with stronger tax morality and higher tax compliance. Conversely, low trust levels are associated with higher tax deviations.
Conclusion
Socioeconomic and demographic factors play a significant role in shaping tax culture and tax collection. Cultural values, institutional strength, demographic characteristics, and levels of public trust are all critical in determining tax compliance behaviors. Understanding these factors can help in designing better tax policies and improving tax collection mechanisms.
Sources and full results
Most relevant research papers on this topic