Hundsdoerfer, Jochen Sielaff, Christian Blaufus, Kay Kiesewetter, Dirk Weimann, Joachim
Year of Publication:
Arqus-Diskussionsbeiträge zur quantitativen Steuerlehre 121
We apply conjoint analysis to study the influence of tax labeling and tax earmarking on German taxpayers' willingness to contribute. From a survey based sample we show that labeling and earmarking effects can substantially increase participants' willingness to contribute, which results in a considerable deviation from a pure consumption maximizing behavior. Furthermore, we give an explanation for this effect regarding socio-demographic attributes of German taxpayers. These results explain the variety in tax labels and provide implications for tax policy regarding further reforms of the tax and contribution system: Labeling and earmarking of contributions are important instruments in selling policies and increasing tax revenue.