Politics and Tax Morale. The role of trust, values, and beliefs, in shaping individual attitudes towards tax compliance

Traditional models of tax evasion cannot explain why most people comply with their taxes. It has been proposed that taxpayers may have an intrinsic motivation (or willingness) to comply with taxes – Tax Morale. Empirical studies found that trusting government, upholding religious beliefs, and supporting democratic regimes, increase individual Tax Morale. Based on those results and drawing from related literature in Political Science, this study tests the role of trusting government institutions delivering public goods to taxpayers, ideological beliefs, individual support for political regimes, and upholding post-materialist values, on Tax Morale. Results for individuals living in democratic countries show a positive relationship between trust in government institutions and upholding democratic values on Tax Morale; a negative relationship between upholding ideological (conservative) beliefs and Tax Morale, and no relationship between upholding post-materialist values and Tax Morale. Results for individuals living under non-democratic regimes differ in some respects; whereas support for democracy is related with higher Tax Morale, other results – trust in government and ideological beliefs – differ from theoretical expectations. Overall, higher trust in government increases willingness to comply with taxes, and support for democracy elicits higher Tax Morale.