Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/115038
Authors: 
Sausgruber, Rupert
Tyran, Jean-Robert
Year of Publication: 
2009
Series/Report no.: 
NRN Working Paper, NRN: The Austrian Center for Labor Economics and the Analysis of the Welfare State 0925
Abstract: 
Tax incentives can be more or less salient, i.e. noticeable or cognitively easy to process. Our hypothesis is that taxes on consumers are more salient to consumers than equivalent taxes on sellers because consumers underestimate the extent of tax shifting in the market. We show that tax salience biases consumers’ voting on tax regimes, and that experience is an effective de-biasing mechanism in the experimental laboratory. Pre-vote deliberation makes initially held opinions more extreme rather than correct and does not eliminate the bias in the typical committee. Yet, if voters can discuss their experience with the tax regimes they are less likely to be biased.
Subjects: 
Tax salience
learning
deliberation
voting
JEL: 
C92
H22
D72
Document Type: 
Working Paper

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