An Investigation of Moral Suasion and Vertical Equity Arguments on Intended Taxpayer Noncompliance

Abstract

A statewide telephone survey was used to obtain data on self‐reports of hypothetical prize income. One‐third of the subjects were read a moral argument, one‐third were read information on the level of taxes paid by the “wealthy,” and one‐third of the subjects were treated as the control group. Both the moral and the wealthy‐pay arguments increased compliance for some of the subjects. There was no apparent backlash effect from the moral argument as suggested by Tittle and Rowe (1973). The wealthy‐pay strategy was effective for taxpayers with tax balances due rather than for those receiving tax refunds. The study also provides evidence on how college education moderates the effects of tax balances due as well as evidence on how a moral argument can negate the noncompliance effects of tax balances due.