Nobody likes to pay taxes. Yet, we all do it. Or at least most of us. When looked at from a behavioural finance perspective, taxes are a form of loss of the income we earned. And because we are all loss averse, we try to minimise the taxes we pay. And this where things get interesting.
From my experiences listening to fellow middle class tax payers, I have found that most people object to what their money is being used for rather than the tax itself. When I have questioned such people I have invariably got agreement. Not a scientific study but it provided an insight to me on what is perceived as 'fair'. I have not found one single taxpayer who objected to paying taxes in general.
From my experiences listening to fellow middle class tax payers, I have found that most people object to what their money is being used for rather than the tax itself. When I have questioned such people I have invariably got agreement. Not a scientific study but it provided an insight to me on what is perceived as 'fair'. I have not found one single taxpayer who objected to paying taxes in general.