Research On The Tax Salience Impact On Consumer Behavior

In this study,the interpretation of the tax salience theory is based on Behavioral Economics theory and method,and use the method of experimental economics to measure the impact that tax salience on consumer choice behavior.Verify the impact factors of tax salience by the use of econometric methods and micro-data,and put forward relevant policy recommendations.The main contents of this study:(1)The interpretation of Behavioral Economics`s basic theories,methods and relevant principles,which can be regarded the theoretical basis for further define,interpret and analyze the connotation of tax salience.(2)This study improves the theoretical interpretation and classifies the tax salience and put forward some influence factors,which is based on the theoretical basis of Behavior Economic of the tax salience.(3)Use experimental economics methods to measure the impaction of tax salience on consumer choice behaviors.Different degree of tax salience have different effects on consumer choice behavior,and tax salience`s degree is affected by means to calculate tax,such as Tax included in price,Tax excluded in price and Tax rebates.They have different impact on consumer behavior.(4)Tax salience is affected by consumer's psychological factors,economic factors and social environment factors and other factors.This study verifis the influence degree of each factors on tax salience by econometric method and first-hand research data.Conclusions:(1)The number of students who purchase school supplies is less than the number of students who purchase daily food and junk food in tax mode.In TI tax mode,the number of students who buy daily food and school supplies is more than that in the other two modes,and share the same degree.But the number of students who purchase junk food is the most in TE tax mode.The number of all types of goods purchased at the price of TE tax mode is more than that in the other two modes,which verifies the principle of the establishment of loss aversion(2)The consumption quantity shows no significant difference of daily food in five discount and three discount.But the price in eight discount is significantly higher than the other two.For school supplies,the consumption quantity is significantly lower in five discount than that in three discount;the consumption quantity shows no significant difference between eight discount and five discount and three discount,the higher discount of junk food,the larger amount of purchases,the difference consumption quantity of each discounts are significant.Eight discount is significantly higher than the other two,five discount is significantly higher than three discount(3)Different tax modes have a significant impact on junk food and daily food `s consumption,but there is no significantly effects on the school supplies' consumption.(4)Daily food and junk food sales significantly higher in TI than that in TD and TE.(5)The impacts on sales of different tax modes is TI> TD>TE,the factors which has direct impact are discount rate DC and the price actually paid P(6)Factors significantly impact tax salience are: the feeling of tax rates,feeling tax complexity and price expectations,place of residence,the reason do not understand the tax,understanding level of the personal income tax,understanding level of the consumption tax,understanding level of the VAT and degree of understanding of the vehicle purchase tax,attitude towards garbage merchandise,cheap purchases and income degree.Implications conclusions of this research study:(1)The nature of the tax salience is th e tax information symmetry problem,and it is also a problem of Tax Behavioral Economic s.It largely depends on consumer's psychology and cognitive level.Under incompletely ir rational premise,tax salience is the study of tax information response sensitivity.Tax salien ce is the result of various combination factors,like the tax itself,the consumer's psycholog y and social environment factors,internal cognitive factors.(2)Tax salience theory expand the tax mainstream economic theory further,and expand the presuppositions of mainstream economics,such as bounded rationality,preferences unstable or discontinuous,it also expa nd the supporting role of Behavioral Economics to tax theory.Tax salience is an important issue of tax Behavioral Economics,it enriched Behavioral Economics' s research field and scope.(3)Tax salience's experiment is fully verify the loss aversion,frame dependence,bo unded rationality,cognitive biases,the halo effect and other principles of Behavioral Econo mics series.This econometric analysis in this research tests tax salience`s impact factors,fu rther validates the principles of the relevant Behavioral Economics,and verify tax system f actors,consumer psychological factors,economic and social factors.The hypothesis of this study was verified.(4)The research on tax salience reveals many irrationality and anti-tra ditional mechanisms of consumer choice behavior,builds an experimental model of taxatio n on consumer behavior.(5)The experiment on tax salience should be further improved.T heories and methods of taxation Behavioral Economics further research should be done.Th eory and method on tax salience should be further studied.Tax salience‘s welfare economi cs effect should be futher studied.Policy recommendations in this study:(1)Chinese tax system should continue to implement the tax included.(2)When government makes tax policy,they should give full attention to the consumer`s tax sensitivity,consumption tax incentive effects of policies should also take full account of tax salience.(3)The Government should take neutral attitude towards to tax salience.(4)China shouldn`t implement high rate of progressive tax.