Tax Policy Ignores Voters' Fairness Demands

This paper argues tax policy often fails to respond to inequality because many voters adhere to equal treatment fairness beliefs, expecting the state to treat all citizens equally on other dimensions - including through uniform taxation.

➡️ Key Findings

• We introduce a new survey instrument to measure these specific 'equal treatment' fairness beliefs.
• Using this tool in surveys across Germany, the United Kingdom, and the United States reveals robust negative partial correlations: stronger equal treatment beliefs predict lower support for higher taxes on the wealthy.
• A US survey experiment demonstrates that exposure to educational-weighted voting (a violation of these beliefs) increases belief strength while simultaneously decreasing support for progressive taxation.

➡️ Methodology

• The study employs original surveys in Germany, UK and USA
• Includes a controlled survey experiment within the US sample
• Relies on novel measurement techniques for fairness concepts
• Utilizes correlational analysis alongside experimental design

➡️ Policy Implications

The findings suggest policymakers should anticipate that citizens with strong equal treatment beliefs may nonetheless resist progressive tax policies to address economic inequality.