The Name Game for Contributions – Influence of Labeling and Earmarking on the Perceived Tax Burden

Freie Universität Berlin, School of Business & Economics Discussion Paper No. 2010/12

30 Pages Posted: 16 Feb 2012

See all articles by Jochen Hundsdoerfer

Jochen Hundsdoerfer

Free University of Berlin (FUB); Norwegian Center for Taxation; ESMT European School of Management and Technology

Christian Sielaff

Free University of Berlin (FUB)

Kay Blaufus

Leibniz Universität Hannover

Dirk Kiesewetter

University of Würzburg

Joachim Weimann

Otto-von-Guericke-Universität Magdeburg - Institute of Economics and Business Administration; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: May 4, 2010

Abstract

In this paper we apply conjoint analysis as an empirical method to study the influence of tax labeling and tax earmarking on the perceived tax burden. As reference for the individual behavior we use the model of a rational utility maximizer described by the economic theory. We determine a significant influence of the labeling and the earmarking of taxes. We can show that the labeling and earmarking effect can decrease the perceived tax burden for the test persons which results in a deviation from a (rational) consumption maximizing behavior. These results give important implications for tax policy regarding further reforms of the tax and contribution system.

Keywords: Tax Labeling, Tax Earmarking, Perceived Tax Burden, Behavioral Taxation, Non Rational

JEL Classification: D03, H20, H51, H52, K34

Suggested Citation

Hundsdoerfer, Jochen and Sielaff, Christian and Blaufus, Kay and Kiesewetter, Dirk and Weimann, Joachim, The Name Game for Contributions – Influence of Labeling and Earmarking on the Perceived Tax Burden (May 4, 2010). Freie Universität Berlin, School of Business & Economics Discussion Paper No. 2010/12 , Available at SSRN: https://ssrn.com/abstract=1982554 or http://dx.doi.org/10.2139/ssrn.1982554

Jochen Hundsdoerfer (Contact Author)

Free University of Berlin (FUB) ( email )

Norwegian Center for Taxation ( email )

Helleveien 30
Bergen, Bergen 5045
Norway

ESMT European School of Management and Technology ( email )

Schlossplatz 1
Berlin, Berlin 10178
Germany

Christian Sielaff

Free University of Berlin (FUB) ( email )

Van't-Hoff-Str. 8
Berlin, Berlin 14195
Germany

Kay Blaufus

Leibniz Universität Hannover ( email )

Institut für Betriebswirtschaftliche Steuerlehre
Koenigsworther Platz 1
Hannover, 30167
Germany

Dirk Kiesewetter

University of Würzburg ( email )

Sanderring 2
Würzburg, D-97070
Germany

Joachim Weimann

Otto-von-Guericke-Universität Magdeburg - Institute of Economics and Business Administration ( email )

Universitaetsplatz 2
Magdeburg, 39016
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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