Support for progressive taxation: self-interest (rightly understood), ideology, and political sophistication

Abstract

Progressive tax rates are one of the main instruments for redistribution within advanced liberal democracies. In this study, we investigate public support for this policy. In our analysis of a novel question included in the Belgian Electoral Study (2019) we show that left-wing citizens are strongly in favour of this system. Importantly, high levels of political sophistication strengthen the association between ideology and preferences for progressive taxation, while political sophistication weakens the association between income and rejecting progressive tax policies. Support for a flat tax policy follows exactly the opposite pattern. Hence, for a highly sophisticated group apparently there is no conflict between a tax system that might hurt their short-term material interests, and support for a more equal society.

The Effects of Solidarity, Income, and Reliance on the State on Personal Income Tax Preferences. The Case of the Czech Republic

“…All these findings correspond to the general idea of solidarity as a way to help the disadvantaged or decrease inequality [86]. However, some recent studies found little association between the change in preferences for tax progressivity and changes in subjective inequality levels [43], while others found a significant association between tax preferences and left-wing political orientation (the latter implying more solidarity [44]). This concept of solidarity has both emotional and practical components.…”

“…Obviously, high-incomes try to avoid increased taxation. However, political sophistication may cause even high-income people to support increased tax progressivity in strife for equal society [44]. Moreover, Cansunar [45] showed that that the adverse attitudes of high-incomes toward tax progressivity significantly depends on the subjective positioning of individuals on the income scale and seems to affect the preference for income tax progressivity more than the actual income.…”

“…On the representative sample from Belgium, Stiers et al [44] showed that progressive tax preferences are characteristic of left-wing citizens with political sophistication, strengthening the relationship between ideology and preferences for progressive taxation and weakening the negative relationship between progressive taxation and income. The authors conclude that, for the highly sophisticated group, there is no apparent conflict between high-incomes and highly progressive taxation.…”

Lower Taxes At All Costs? Evidence from a Survey Experiment in Four European Countries

“…Hence, only people on the right support lower taxes at all costs. In line with existing work on attitudes towards redistribution Armingeon and Weisstanner (2021) and taxation (Stiers et al, 2022), this finding is important because it implies that a progressive coalition against lower taxes, combining low-income citizens and high-income "leftists", may be viable.…”

Redistributive preferences: Why actual income is ultimately more important than perceived income

“…We define political ideology as a coherent set of values, general convictions and attitudes (Converse, 2006: 3). Ideology is an explanation of redistributive attitudes that often interacts with economic self-interest and can render the direct effect of self-interest less relevant (Armingeon and Weisstanner, 2021; Margalit, 2013; Stiers et al, 2021). When citizens develop preferences, a crucial early step is the accommodation with previously held values and beliefs (Lodge and Taber, 2013).…”