Public support for tax policies in COVID-19 times: evidence from Luxembourg.
Int Tax Public Financ
; 29(6): 1395-1418, 2022.
Article
in English
| MEDLINE | ID: covidwho-1955984
ABSTRACT
We study attitudes towards the introduction of hypothetical new taxes to finance the cost of the COVID-19 pandemic. We rely on survey data collected in Luxembourg in 2020. The survey asks for the agreement of respondents over a one-time net wealth tax, an inheritance tax, a temporary solidarity income tax, and a temporary increase in VAT. All questions include different and randomly assigned tax attributes (tax rates and exemption amounts). We find a clear divide with relatively high support for new wealth and inheritance taxes on the one hand and a low support for increases in VAT and income taxes on the other hand. While 58% of respondents agree or strongly agree with a one-time tax levied on net worth, only 24% are in favor of a small increase in VAT. Support for any tax is however negatively associated with the size of the tax as measured by the predicted revenues. Our results indicate that a one-time wealth tax could raise substantial revenues and still garner public support. Supplementary Information The online version contains supplementary material available at 10.1007/s10797-022-09744-y.
Full text:
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Collection:
International databases
Database:
MEDLINE
Type of study:
Experimental Studies
/
Observational study
/
Prognostic study
/
Randomized controlled trials
Language:
English
Journal:
Int Tax Public Financ
Year:
2022
Document Type:
Article
Affiliation country:
S10797-022-09744-y
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