How do Australians Think about Tax ?
This presentation is the property of its rightful owner.
Sponsored Links
1 / 23

How do Australians Think about Tax ? PowerPoint PPT Presentation


  • 93 Views
  • Uploaded on
  • Presentation posted in: General

How do Australians Think about Tax ?. Valerie Braithwaite Regulatory Institutions Network ANU . Presentation Outline. Thinking Complexly about Tax – Alive and Well in the Community Statistical Snapshots of What People Think About Tax and Democracy

Download Presentation

How do Australians Think about Tax ?

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


How do australians think about tax

How do Australians Think about Tax ?

Valerie Braithwaite

Regulatory Institutions Network

ANU


How do australians think about tax

Presentation Outline

Thinking Complexly about Tax – Alive and Well in the Community

Statistical Snapshots of What People Think About Tax and Democracy

A Model to Guide Understanding of How the Public Engage with Tax Reform


How do australians think about tax

Thinking Complexly about Tax

6 tax focused national mail surveys between 1999 and 2005

3 of these surveys tracked Australians responses to the tax reform process that saw the introduction of the goods and services tax (GST)

2000 survey was conducted pre-GST, 2001-2 survey was conducted after the GST came into effect in July 2001, 2005 survey was conducted after the reform process was bedded down


How do australians think about tax

Post the 2005 Federal Budget, Taxpayers were Asked:

Would the budget tax cuts make you financially better off?

• 7% thought they would be somewhat or much better off

• 28% thought they’d be a little better off

• 52% thought no better off, no worse off

• 13% didn’t know


How do australians think about tax

Would the tax cuts make the tax system fairer ?

• 8% thought more fair

• 27% thought a little more fair

• 30% thought no difference

• 12% thought a little less fair

• 22% thought less fair


How do australians think about tax

What should the government have done: reduced taxes or spent more on social services/infrastructure ?

• 28% Reduced taxes

• 13% Depends

• 59% Spent more on social services and infrastructure


How do australians think about tax

Drivers of attitudes to tax cuts or spending on social services and infrastructure?

• Self-interest? A little, not much

• Political party identification? A little more, but not much

• Values and social goals for the democracy? Yes


How do australians think about tax

Comparison with attitudes to GST: Self-interest not very important, values and goals were “squashed” by political identification

Conclusion of these studies: The institutions of politics and the media crowd out and homogenize public views and engender helplessness and disinterest in the deliberative process


How do australians think about tax

Snapshot Statistics of what Australians Think: How many Australians agree or say yes in 2000, 2002, and 2005 to questions on “value for money”?

Do you think the tax you pay is fair given the goods and services you receive from government?

37%39%34%

Would you prefer to pay less tax even if it means receiving a more restricted range of goods and services?

31%38%27%

How satisfied are you with the way the government spends taxpayers’ money?

15% 21% 17%


How do australians think about tax

Snapshot Statistics of what Australians Think: How many Australians feel oppressed by taxation agreeing with the following in 2000, 2002 and 2005?

I would be better off if I worked less given the rate at which I am taxed

31%29%26%

Paying tax means I just can’t get ahead

28%29%29%

Paying tax removes the incentive to earn more income

56%49%48%


How do australians think about tax

Snapshot Statistics of what Australians Think: How many Australians feel a moral obligation to pay tax in 2000, 2002 and 2005 ?

Do you think you should honestly declare all your tax earnings?

72%72%72% Yes

Do you think it is acceptable to overstate tax deductions in your return?

8%7%6% Yes

Do you think working for cash-in-hand payments without paying tax is a trivial offence?

32%31%28% Yes


How do australians think about tax

Democratic collective self: a self that expects government to deliver in exchange for our cooperation, an expectation of being respected as a citizen

Competitive self: a self that aspires to wealth, power and status in some cases and to a job, family and home in others

Moral self: a self that wants to be honest and seen to be honest, as law abiding, as not needing to be fearful of authority, a good person

Conclusion: Tax reform in its outcomes and process needs to be respectful of these selves.


How do australians think about tax

How is the Democratic Collective Self undermined ?


How do australians think about tax

48

Freemarket

38

40

85

Tax HFHE (L) 2005

Disillusionment

87

Hope 2003

Tax CHFAS 2000

86

0

20

40

60

80

100

Percent agree or strongly agree

A comparison of levels of disillusionment with Australian democracy

and support for small government and free markets 2000 - 2005


How do australians think about tax

5

Unskilled factory workers

6

9

Farm labourers

9

11

Waitresses

10

24

Trades people

22

23

Small business owners

24

29

Farm owners

29

Tax ATSFONS

Tax CHFAS

47

Tax agents and advisors

45

49

Doctors in general practice

51

60

Surgeons

59

73

Senior judges and barristers

64

75

Owner managers

70

78

Chief executives

77

0

10

20

30

40

50

60

70

80

90

Percent paying a bit less or much less than their fair share

Perceptions of the degree to which different occupational

groups are paying their fair share of tax


How do australians think about tax

Trust in Institutions


How do australians think about tax

Competitive Self

How is it being undermined? It hasn’t although it may be harder to “win” by being law abiding (Hypothesis).

Opportunities for investment and prosperity have been high for those who have been able to take advantage of Australia’s favourable economic conditions. Negative relationship to moral obligation.

Opportunities for tax minimization and avoidance have been available for those with wealth. Negative relationship to moral obligation.

Opportunities for those aspiring to home, family and a good job have been less easily accessed by segments of the population. Negative relationship to moral obligation.


How do australians think about tax

Moral Self - How is it being undermined?

Imagine that you have to find a tax adviser. What would your ideal tax adviser be like? Would you give a top or high priority to some who is …

Honest and offers a no fuss service

85%82%85%

Good at minimizing tax without taking risks

30% 26%21%

Willing to be aggressive in reducing the tax bill

24%20%20%


How do australians think about tax

Imagine you are caught for tax evasion – not declaring $5,000 in income or claiming work deductions unlawfully worth $5,000. How would you feel if you were caught ?

60% in 2000 and 60% in 2002 said they were likely or certain to feel ashamed or guilty

8% in 2000 and 8% in 2002 said they were likely to feel angry with the tax office and express that anger

7% in 2000 and 8% in 2002 said they would just shrug it off and not worry too much about it


How do australians think about tax

11

Gameplaying

10

13

5

Disengagement

7

6

57

Resistance

57

55

Tax HEHF (L) 2005

Tax ATSFONS 2001

74

Tax CHFAS 2000

Capitulation

72

73

92

Commitment

94

92

0

20

40

60

80

100

Percent agreement

Percent endorsing each motivational posture to

Australian Taxation Office 2000 - 2005


How do australians think about tax

The Wheel of Social Alignments

Braithwaite, Valerie (2009) ‘Tax evasion’ In M. Tonry, Handbook on Crime and Public Policy Oxford: Oxford University Press


  • Login