Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
The goal of this paper is to determine the effect of anti-immigration perceptions on tax morale. Tax morale, one’s inherent and non-incentive-based willingness to pay taxes, is a key driver of economic efficiency. However, changing attitudes towards immigrants in developed countries may make native-born citizens less motivated to comply with tax systems. Using individual-level survey data from the European Values Study, I employ several OLS linear multiple regression models to identify the determinants of tax morale in Europe. I find that rising anti-immigration perceptions have a statistically significant and negative impact on tax morale. Controlling for political orientation does not materially change the anti-immigration perceptions coefficient. A Sweden-Hungary case study reveals insights into the unique tax morale dynamics in Scandinavia. I find that anti-immigration perceptions in Sweden have an exceptionally strong negative impact on tax morale. I argue that Scandinavian tax morale may react extremely to immigration sentiment because of a perceived threat to the population’s homogeneity and a decline in social cohesion and trust. These findings advance the literature on tax morale determinants and have real implications for policy-makers responsible for balancing the economic and moral considerations of immigration.
Drucker, Adrien, "How Does Anti-Immigration Sentiment Affect Tax Morale?" (2024). CMC Senior Theses. 3429.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.