Understanding attitudes toward progressive taxation

Abstract This article examines attitudes toward and under-standing of progressive taxation by comparing subjects ' choices of fair tax rate structures in response to questions framed in both abstract and concrete terms. Consistent with surveys of the gen-eral public, a majority of the subjects indicated a preference for progressive taxation in response to abstract questions. However, consistent with results from social psychology and political sci-ence research, the subjects ' preferences for progressive taxation were significantly different (lower) in response to concrete ques-tions. The observed preference reversal between progressive taxes in the abstract and flat taxes (i.e., proportional to income) in concrete situations is hypothesized to be associated with sub-jects ' ignorance (their lack of understanding of the abstract con-cept of progressive taxation). Thus, between-subjects tests are conducted to examine (1) differences in order effects of the ab-stract and concrete frames that might cue the subjects to a greater understanding of the abstract terms, (2) the effects of definitions and illustrations on subjects ' choices, and (3) the use of different scales and reference points to measure responses. Consistent re-sults (preference reversals from preferences for progressivity in the abstract to nonprogressive preferences in concrete frames) were obtained across all of the between-subjects experimental manipulations. A within-subjects design also includes a posttest knowledge test that demonstrates the tendency of a majority of MICHAEL L. ROBERTS is Price Waterhouse Visiting Tax Professor and associate profes