Answered step by step
Verified Expert Solution
Question
1 Approved Answer
explain, To encourage citizens to pay taxes willingly, it's crucial for tax systems to rely on mass voluntary compliance, as it's expensive to collect taxes
explain, To encourage citizens to pay taxes willingly, it's crucial for tax systems to rely on mass voluntary compliance, as it's expensive to collect taxes through detection and punishment. Some countries observe widespread voluntary compliance, while others face issues with tax evasion. Factors like high levels of democracy and government trust can positively influence "tax morale," leading to greater compliance. Another approach suggests that taxpayers are conditional cooperators who pay taxes as long as they believe others are doing the same. Governments should avoid publicizing low compliance rates, as it can backfire, and instead focus on reinforcing a culture of compliance and trust to maintain tax morale and increase voluntary tax payments
Step by Step Solution
★★★★★
3.43 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
Encouraging citizens to willingly pay taxes is essential for the effective functioning of a tax system Heres an explanation of why mass voluntary comp...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started