Does Religion Have Relevance for Individual Tax Behavior in the U.S.? Evidence from Online Search and Chatter Activity

Abstract

Using individual tax behavior as a research setting, this paper seeks to understand whether and how religion plays a role in people’s information search and dissemination behavior in a non-religious context. Google search data show that the tax season in the U.S. is marked by a notably higher search interest in religious teachings on taxes. However, despite the commonly held view that religion and rationality are often at odds, we also find that people’s online search interest in tax loss strategies (which help minimize taxable income) and tendency to ask “why” questions about taxes are greater in states with higher religiosity. In parallel, users from highly versus less religious states include more interrogatives and less certainty words in their tax-related tweets posted during the 2019 U.S. federal government shutdown. Further, when giving advice about tax preparation software, people living in highly versus less religious states use certainty words less extensively.