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TrendsonAttitudesTowardTaxEvasionintheUnitedStates

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Working PaperMay 2008

TRENDS ON ATTITUDES TOWARD TAX EVASION IN THE UNITED STATES

Robert W. McGeeFlorida International University

Wendy GelmanFlorida International University

ABSTRACT

This paper uses data collected from three surveys regarding attitudes on tax evasion to

determine whether any trends can be identified. Comparisons are also made by gender,

age, religious practice and marital status to determine whether attitudes toward tax

evasion differ based on these categories.

INTRODUCTION

Many studies have been done on various aspects of tax evasion over the years.

The public finance literature is full of studies that discuss tax collection systems, which

Electronic copy available at: http://ssrn.com/abstract=1138360

taxes are best or worst, optimum tax rates,1 and so forth. Some studies advocate a flat

income tax while others prefer a graduated system. Papers have even been written on the

optimum level of tax evasion.2 However, the authors were unable to find any longitudinal

studies that have examined attitudes toward the ethics of tax evasion over time. The

present study aims at filling this void in the literature.

REVIEW OF THE LITERATURE

Tax evasion is a multi-faceted topic. Hundreds of articles and studies have been

written that examine various economic and public finance aspects of tax evasion.

Practitioner journals discuss tax evasion from a practitioner perspective but seldom get

into a serious discussion of ethical theory. One article that does attempt to address both

ethical and legal issues was written by Oliva.3 These subtopics have been well covered

already so we feel no need to rehash this territory.

1 Helmuth Cremer & Firouz Gahvari, Tax Evasion and the Optimum General Income Tax, 60 J. PUB. ECON. 235-249 (1995); Gerald W. Scully, Optimal Taxation, Economic Growth and Income Inequality, 115 PUB. CHOICE 299-312 (2003); Roderick Hill, Optimal Taxation and Economic Growth: A Comment, 134 PUB. CHOICE 419-427 (2008).

2 Carl Davidson, Lawrence Martin & John D. Wilson, Tax Evasion as an Optimal Tax Device. 86 ECON. LETTERS 285-289 (2005); Serge-Christophe Kolm, A Note on Optimum Tax Evasion, 2 J. PUB. ECON. 265-270 (1973); Rosella Levaggi & Francesco Menoncin, A Note on Optimal Tax Evasion in the Presence of Merit Goods (2007). Available at http://ssrn.com/abstract=979687.

3 Robert R. Oliva, R. R. (1998). The Schism between Tax Practitioners’ Ethical and Legal Obligations: Recommendations for the Fusion of Law and Ethics, 1 J. ACCT., ETHICS & PUB. POL’Y 603-628, reprinted in THE ETHICS OF TAX EVASION 350-371 (Robert W. McGee ed., 1998).

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One of the most comprehensive studies on the ethics of tax evasion was done by a

Catholic priest4 in 1944. He examined 500 years of theological and philosophical

literature, some of which was in the Latin language, and introduced the English reading

public to this literature. A more recent study by Torgler5 looked at tax evasion from

several angles, including public finance. He also devoted some space to an examination

of why people evade taxes.

A survey of Armenian taxpayers found that they evade taxes because they can and

because they feel no moral obligation to pay taxes to a corrupt government that gives

them little or nothing in return for their tax payments.6 Studies of Bulgaria,7 Greece8 and

Russia9 have also found corruption to be a reason people give to justify tax evasion.

Another reason that has been used to justify tax evasion over the centuries is inability to

4 Martin T. Crowe, The Moral Obligation of Paying Just Taxes, No. 84 The Catholic University of America Studies in Sacred Theology (1944).

5 Benno Torgler, Tax Morale: Theory and Empirical Analysis of Tax Compliance (2003). (unpublished doctoral dissertation, Universität Basel zur Erlangung der Würde eines Doktors der Staatswissenschaften) (on file with author). Also at http://pages.unibas.ch/diss/2003/DissB_6463.htm

6 Robert W. McGee, Why People Evade Taxes in Armenia: A Look at an Ethical Issue Based on a Summary of Interviews. 2 J. ACCT., ETHICS & PUB. POL’Y 408-416 (1999). Reprinted at http://ssrn.com/abstract=242568.

7 Gueorgui Smatrakalev, Walking on the Edge: Bulgaria and the Transition to a Market Economy, in THE ETHICS OF TAX EVASION 316-329 (Robert W. McGee ed., 1998).

8 Apostolos A. Ballas & Haridimos Tsoukas, Consequences of Distrust: The Vicious Circle of Tax Evasion in Greece, 1 J. ACCT., ETHICS & PUB. POL’Y 572-596 (1998), reprinted in THE ETHICS OF TAX EVASION 284-304 (Robert W. McGee ed., 1998).

9Vladimir V. Vaguine, The “Shadow Economy” and Tax Evasion in Russia, in THE ETHICS OF TAX EVASION 306-314 (Robert W. McGee ed., 1998). Also see Robert W. McGee, Is It Unethical to Evade Taxes in an Evil or Corrupt State? A Look at Jewish, Christian, Muslim, Mormon and Baha’i Perspectives. 2 J. ACCT., ETHICS & PUB. POL’Y 149-181 (1999). Reprinted at http://ssrn.com/abstract=251469.

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pay.10 Morales found that Mexican workers with limited funds found the duty to feed

their family was superior to their obligation to pay taxes.11

There are three basic positions on the ethics of tax evasion.12 Some scholars

believe that tax evasion is always unethical.13 But their reasons differ. Some believe there

is a duty to the state while others believe there is a duty to God because God has

commanded us to pay taxes.

Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained by God. Whosoever therefore resisteth the power, resisteth the ordinance of God: and they that resist shall receive to themselves damnation.14

Render therefore unto Caesar the things which are Caesar’s; and unto God the things that are God’s.15

Anyone who cheats on income taxes transgresses the law prohibiting robbery, whether the king (government) be Jewish or non-Jewish; for the law of the country is the Law. Some scholars held that this law implied no more than the obligation to pay taxes and to help the country against

10 Martin T. Crowe, The Moral Obligation of Paying Just Taxes, No. 84 The Catholic University of America Studies in Sacred Theology (1944); 2 Kings 23: 35.

11 Alfonso Morales, Income Tax Compliance and Alternative Views of Ethics and Human Nature, 1 J. ACCT, ETHICS & PUB. POL’Y 380-399 (1998). Reprinted in THE ETHICS OF TAX EVASION 242-258 (Robert W. McGee ed., 1998).

12 See Robert W. McGee, Three Views on the Ethics of Tax Evasion, 67 J. BUS. ETHICS 15-35 (2006).

13 Sheldon R. Smith & Kevin C. Kimball, Tax Evasion and Ethics: A Perspective from Members of The Church of Jesus Christ of Latter-Day Saints, 1 J. ACCT, ETHICS & PUB. POL’Y 337-348 (1998). Reprinted in THE ETHICS OF TAX EVASION 220-229 (Robert W. McGee ed., 1998).

14 Romans 13, 1-2. The Jewish tradition also supports the view that one must obey all laws. See Gordon Cohn, The Jewish View on Paying Taxes, 1 J. ACCT, ETHICS & PUB. POL’Y 109-120 (1998). reprinted in THE ETHICS OF TAX EVASION 180-189 (Robert W. McGee ed., 1998), who cites the Talmud, Tractates Baba Kamma (113a), Nadorim (28a), Gittin (10b) and Baba Basra (25a) as well as the Chosen Mishpat section of the CODE OF JEWISH LAWS, chapter 369.

15 Matthew 22:21.

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enemies, but the majority opinion holds that conformity to all laws imposed by a legally constituted government is compulsory.16

A third position is that there is a duty to other taxpayers, since if one person

evades, others must pay his share.17 There is a strain of thought within the Jewish

literature that one Jew must never do anything to disparage another Jew. Thus, if one Jew

evades taxes it makes all Jews look bad.18

At the other extreme is the belief that it is always ethical to evade taxes because

there is no duty to support illegitimate governments and all governments are

illegitimate.19 Those who take this position generally do not discuss the ethics of tax

evasion in particular, though. They merely argue that all governments are illegitimate and

allow the reader to extrapolate that view to arrive at the conclusion that tax evasion is

always ethical.20

16 LEO JUNG, BUSINESS ETHICS IN JEWISH LAW 112 (1987). 17 Robert W. McGee, Three Views on the Ethics of Tax Evasion, 67 J. BUS. ETHICS 15-35 (2006);

18 Gordon Cohn, The Jewish View on Paying Taxes, 1 J. ACCT, ETHICS & PUB. POL’Y 109-120 (1998). Reprinted in THE ETHICS OF TAX EVASION 180-189 (Robert W. McGee ed., 1998). Tamari, another Jewish scholar, takes a slightly less absolutist position. See Meir Tamari, Ethical Issues in Tax Evasion: A Jewish Perspective, 1 J. ACCT., ETHICS & PUB. POL’Y 121-132 (1998). Reprinted in THE ETHICS OF TAX EVASION 168-178 (Robert W. McGee ed., 1998).

19 LYSANDER SPOONER, NO TREASON: THE CONSTITUTION OF NO AUTHORITY, originally self-published by Spooner in Boston in 1870 (1870). reprinted by Rampart College in 1965, 1966 and 1971, and by Ralph Myles Publisher, Inc., Colorado Springs, Colorado in 1973; JOHN P. CLARK, THE PHILOSOPHICAL ANARCHISM OF WILLIAM GODWIN (1977).

20 LYSANDER SPOONER, NO TREASON: THE CONSTITUTION OF NO AUTHORITY, originally self-published by Spooner in Boston in 1870 (1870). Reprinted by Rampart College in 1965, 1966 and 1971, and by Ralph Myles Publisher, Inc., Colorado Springs, Colorado in 1973.

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Walter Block21 takes a slightly different approach. He examined the public

finance literature in a vain attempt to find a justification for taxation. His conclusion was

not that tax evasion can always be justified but rather that the public finance literature has

not done a good job of justifying tax evasion.

The third position is that tax evasion can be ethical under certain circumstances

but not in others. The position most scholars have taken over the centuries is that tax

evasion may be justified in certain circumstances. These scholars believe that there is

some duty to pay taxes but that the duty is less than absolute.22

Although various scholars over the centuries have justified tax evasion in certain

circumstances, some have been more restrictive than others. The literature of the Baha’i

faith takes the position that tax evasion is always unethical except in cases where some

21 Walter Block, The Justification of Taxation in the Public Finance Literature: A Critique, 3 J. PUB. FIN. & PUB. CHOICE 141-158 (1989); Walter Block, Public Finance Texts Cannot Justify Government Taxation: A Critique, 36 CAN. PUB. ADMIN./ADMINISTRATION PUBLIQUE DU CANADA 225-262 (1993).reprinted in revised form under the title The Justification for Taxation in the Economics Literature, in THE ETHICS OF TAX EVASION 36-88 (Robert W. McGee ed., 1998).

22 Martin T. Crowe, The Moral Obligation of Paying Just Taxes, No. 84 The Catholic University of America Studies in Sacred Theology (1944); Gregory M.A. Gronbacher, Taxation: Catholic Social Thought and Classical Liberalism, 1 J. ACCT, ETHICS & PUB. POL’Y 91-100 (1998). reprinted in THE ETHICS OF TAX EVASION 158-167 (Robert W. McGee ed., 1998); Bret H. Leiker, Rousseau and the Legitimacy of Tax Evasion, 1 J. ACCT., ETHICS & PUB. POL’Y 45-57 (1998), reprinted in THE ETHICS OF TAX EVASION 89-101 (Robert W. McGee ed., 1998); ROBERT W. MCGEE (ED.), THE ETHICS OF TAX EVASION (1998); Robert W. McGee, Christian Views on the Ethics of Tax Evasion, 1 J. ACCT., ETHICS & PUB. POL’Y 210-225 (1998); Robert W. McGee, The Ethics of Tax Evasion and Trade Protectionism from an Islamic Perspective, 1 COMMENT. L. & PUB. POL’Y 250-262 (1997). Reprinted at http://ssrn.com/abstract=461397; Robert T. Pennock, Death and Taxes: On the Justice of Conscientious War Tax Resistance, 1 J. ACCT, ETHICS & PUB. POL’Y 58-76 (1998). Reprinted in THE ETHICS OF TAX EVASION 124-142 (Robert W. McGee ed., 1998); D. Eric Schansberg, The Ethics of Tax Evasion within Biblical Christianity: Are There Limits to “Rendering Unto Caesar”? 1 J. ACCT., ETHICS & PUB. POL’Y 77-90 (1998). Reprinted in THE ETHICS OF TAX EVASION 144-157 (Robert W. McGee ed., 1998).

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government oppresses members of the Baha’i religion.23 Some of the Baha’i literature

from the 1930s took the position that there is even a duty to pay taxes to Hitler.24

However, the literature that took this position was published before Hitler invaded Poland

and started killing vast numbers of people.

What if you are a Jew living in Nazi Germany where Hitler is the tax collector? Is

there still a duty to pay taxes? One may think not, but a survey of orthodox Jews found

that they believe there is some duty to pay taxes even to Hitler, not because there is a

duty to the state but because there is a duty not to disparage another Jew.25

THE PRESENT STUDY

The present study has several goals. One goal is to measure the extent of support

for tax evasion in the USA. Another goal is to determine whether gender, age, religious

practice or marital status make a difference in viewpoint. The third goal was to determine

whether support for tax evasion increased or decreased over time. We think we have

accomplished all three goals.

Methodology

23Wig DeMoville, The Ethics of Tax Evasion: A Baha’i Perspective, 1 J. ACCT, ETHICS & PUB. POL’Y 356-368 (1998). Reprinted in THE ETHICS OF TAX EVASION 230-240 (Robert W. McGee ed., 1998). 24 Id.25 Robert W. McGee & Gordon Cohn, Jewish Perspectives on the Ethics of Tax Evasion, ACAD. ACCT. & FIN. STUD. J., forthcoming (2008).

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Inglehart et al.26 have conducted a number of massive surveys over the past few

decades. The sample size sometimes exceeded 200,000 and the number of countries

surveyed exceeded 80. The survey included hundreds of questions on a wide range of

topics. That is why their surveys are sometimes referred to as the human beliefs and

values surveys. One possible criticism is that the interviews were conducted face to face

rather than anonymously. With face to face interviews there might be a tendency for the

respondent to answer the way the interviewer expects rather than giving the true answer.

This problem could have been eliminated by anonymous surveys. This study selected the

data gathered in the USA for three different survey years – 1982, 1990 and 1999, which

was the most recent year available.

The survey asked the following question on the ethics of tax evasion -- Would

you cheat on taxes if you had a chance? The range of responses was 1 to 10, where 1 =

never justifiable and 10 = always justifiable.

Findings

Table 1 shows the statistical data for each of the three survey years chosen. The

sample size varied between 1198 (1999) and 2286 (1982). Mean scores were computed

for various demographics, including gender, age, religious practice and marital status.

26 HUMAN BELIEFS AND VALUES: A CROSS-CULTURAL SOURCEBOOK BASED ON THE 1999-2002 VALUES SURVEYS (Ronald Inglehart et al. eds., 2004).

8

Table 1 Statistical Data(1 = never justifiable; 10 = always justifiable)

1982 1990 1999

Sample size 2286 1768 1198

Mean Scores

Overall 2.06 1.92 2.28

GENDER

Male 2.29 1.92 2.54

Female 1.85 1.92 2.01

AGE

15-29 2.42 2.46 2.73

30-49 2.16 2.01 2.26

50+ 1.60 1.62 1.90

RELIGIOUS PRACTICE (attendance at services)

More than once a week (MTOW) 1.34 1.68 1.76

Once a month (OM) 2.18 2.06 2.49

Never/practically never (NPN) 2.57 2.25 2.74

MARITAL STATUS

Married 1.90 1.82 2.01

Divorced 2.13 2.33 2.11

Widowed 1.48 1.55 2.01

Single 2.59 2.28 2.70

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Gender

Several scholars have conducted studies to determine whether one gender is more

ethical than the other. The results are mixed. Some studies have found women to be more

ethical27 while other studies have found men to be more ethical.28 A third group of studies

have found no statistical difference between men and women when it comes to ethics.29

Several studies have examined the attitude toward tax evasion based on gender.

Again the results are mixed. Women are more opposed to tax evasion if they are

27 David P. Boyd, Improving Ethical Awareness through the Business and Society Course, 20-21 BUS. & SOC’Y 27-31 (1981); Leslie M. Dawson, Ethical Differences between Men and Women in the Sales Profession, 16 J. BUS. ETHICS 1143-1152 (1997); Ronald R. Sims, Hsing K. Cheng & Hildy Teegen, Toward a Profile of Student Software Piraters, 15 J. BUS. ETHICS 839-849 (1996).

28John H. Barnett & Marvin J. Karson, Personal Values and Business Decisions: An Exploratory Investigation, 6 J. BUS. ETHICS 371-382 (1987); William A. Weeks, Carlos W. Moore, Joseph A. McKinney & Justin G. Longenecker, The Effects of Gender and Career Stage on Ethical Judgment, 20 J. BUS. ETHICS 301-313 (1999).

29 Robert Loo, Are Women More Ethical Than Men? Findings from Three Independent Studies, 18 WOMEN MGMT REV. 169-181 (2003); Maria L.Roxas & Jane Y. Stoneback, The Importance of Gender Across Cultures in Ethical Decision-Making 50 J. BUS. ETHICS 149-165 (2004); Ziad Swaidan, Scott J. Vitell, Gregory M. Rose & Faye W. Gilbert, Consumer Ethics: The Role of Acculturation in U.S. Immigrant Populations, 64 J. BUS. ETHICS 1-16 (2006).

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international business professors,30 Orthodox Jews,31 Chinese32 or Guatemalan.33 Men are

more opposed if they are Romanian34 or Slovak.35 Studies of Argentina,36 China,37

Poland38 and Thailand39 found men and women to be equally opposed to tax evasion.

Chart 1 shows the trend both overall and by gender. Opposition to tax evasion

increased between 1982 and 1990, both overall and for males, then decreased. Female

30Robert W. McGee, The Ethics of Tax Evasion: A Survey of International Business Academics, Presented at the 60th INT’L ATLANTIC ECON. CONF., New York, October 6-9, 2005. Also available at www.ssrn.com. 31 Robert W. McGee & Gordon Cohn, Jewish Perspectives on the Ethics of Tax Evasion, ACAD. ACCT. & FIN. STUD. J., forthcoming (2008).

32 Robert W. McGee & Y. Y. Butt, The Ethics of Tax Evasion: A Survey of Hong Kong Opinion, forthcoming (2008); Robert W. McGee & Zhiwen Guo, The Ethics of Tax Evasion: A Survey of Law, Business and Philosophy Students in China, Published in the PROC. INT’L ACAD. BUS. & PUB. ADMIN. DISCIPLINES (IABPAD), 2006 WINTER CONFERENCE, Orlando, Florida, January 3-6 (2006). Reprinted at www.ssrn.com.

33 Robert W. McGee & Christopher Lingle, The Ethics of Tax Evasion: A Survey of Guatemalan Opinion, PRESENTED AT THE 60TH INT’L ATLANTIC ECON. CONF., NEW YORK, OCTOBER 6-9, 2005 (2005). Also available at www.ssrn.com.

34ROBERT W. MCGEE, THE ETHICS OF TAX EVASION: A SURVEY OF ROMANIAN BUSINESS STUDENTS AND FACULTY, (Andreas School of Business Working Paper Series, Barry University, Miami Shores, FL 33161, USA, September, 2005). Available at www.ssrn.com. Reprinted in ROBERT W. MCGEE & GALINA G. PREOBRAGENSKAYA, ACCOUNTING AND FINANCIAL SYSTEM REFORM IN EASTERN EUROPE AND ASIA 299-334 (2006). 35ROBERT W. MCGEE & RADOSLAV TUSAN, THE ETHICS OF TAX EVASION: A SURVEY OF SLOVAK OPINION, (Andreas School of Business Working Paper, Barry University, September, 2006). Available at www.ssrn.com. 36 Robert W. McGee & Marcelo J. Rossi, The Ethics of Tax Evasion: A Survey of Law and Business Students in Argentina, SIXTH ANN. INT’L BUS. RES. CONF., co-sponsored by the Coggin College of Business, University of North Florida and the School of Management, Warsaw University, February 10-11, 2006, Jacksonville, Florida (2006). Reprinted at www.ssrn.com.

37 Robert W. McGee & Yuhua An, The Ethics of Tax Evasion: A Survey of Chinese Business and Economics Students, Published in the PROC. INT’L ACAD. BUS. & PUB. ADMIN. DISCIPLINES (IABPAD), 2006 WINTER CONFERENCE, Orlando, Florida, January 3-6 (2006). Reprinted at www.ssrn.com; Robert W. McGee & Simon S. M. Ho, The Ethics of Tax

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opposition decreased over time, although female opposition is still stronger than male

opposition.

Chart 1 Trend Overall and by Gender

0123456789

10

Overall Male Female

1982 1990 1999

Table 2 compares the male and female scores for each of the three surveys. Male

scores were significantly higher than female scores for the 1982 and 1999 surveys but

were not significantly different for the 1990 survey.

Table 2Male-Female Mean Score Comparisons

Evasion: A Survey of Accounting, Business and Economics Students in Hong Kong, Published in the PROC. INT’L ACAD. BUS. & PUB. ADMIN. DISCIPLINES (IABPAD), 2006 WINTER CONF., Orlando, Florida, January 3-6 (2006). Reprinted at www.ssrn.com; Robert W. McGee, Carlos Noronha & Michael Tyler, The Ethics of Tax Evasion: A Survey of Macau Opinion, Presented at the FIFTEENTH ANN. WORLD BUS. CONG. INT’L MGMT DEV. ASSN (IMDA), Sarajevo, Bosnia, June 18-21 (2006).

38 Robert W. McGee & Arkadiusz Bernal, The Ethics of Tax Evasion: A Survey of Business Students in Poland, SIXTH ANN. INT’L BUS. RES. CONF., co-sponsored by the Coggin College of Business, University of North Florida and the School of Management, Warsaw University, February 10-11, 2006, Jacksonville, Florida (2006). Reprinted at www.ssrn.com.

39 Robert W. McGee, The Ethics of Tax Evasion: A Case Study of Opinion in Thailand, 2006 ACAD. INT’L BUS. SOUTHEAST ASIA REGIONAL CONF., Bangkok, December 7-9, 2006 (2006).

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(1 = never justifiable; 10 = always justifiable)

Year Male Female Diff. p value

1982 2.29 1.85 0.44 0.0001112 *

1990 1.92 1.92 0.00 0.77

1999 2.54 2.01 0.53 5.599e-06 *

* Significant at 1%

The next question to be answered is whether the differences in scores between

surveys were significant. Table 3 shows the results of the tests of significance. Wilcoxon

tests were used to compute the significance levels. The changes in male scores between

surveys were significant at the 1 percent level. The changes in female scores were not

significant.

Table 3Tests of Significance – Gender

1999vs.

1990

1999vs.

1982

1990vs.

1982

Male 2.334e-07* 0.00673* 0.004932*

Female 0.8476 0.4278 0.4278

* Significant at 1%

Age

13

Some studies have examined the relationship between age and ethical character.

Ruegger and King40 found that people become more ethical as they get older. Their study

divided respondents into the following four groups: 21 or less, 22-30, 31-40 and 40 plus.

But Sims et al.41 found that older students had fewer qualms about pirating software than

did younger students.

Babakus et al.42 also found that age made a difference, but what difference age

makes sometimes depends on culture. Younger people from the UK, USA and France

tend to be less ethical consumers than do older people from these countries, whereas

younger Austrians tend to be more ethical consumers than their elders.

Table 4 compares the mean scores for the three different age groups surveyed. A

comparison of the 15-29 and 30-49 age groups revealed that the older age group (30-49)

was significantly more opposed to tax evasion for all three surveys. A comparison of the

youngest (15-29) and oldest (50+) age groups also found the older age group to be

significantly more opposed to tax evasion for all three survey years. Comparing the

middle (30-49) and older (50+) age groups also revealed that the older age group was

significantly more opposed to tax evasion for all three survey years.

Table 4Age Mean Comparisons (1 = never justifiable; 10 = always justifiable)

40 Durwood Ruegger & Ernest W. King. A Study of the Effect of Age and Gender upon Student Business Ethics, 11 J. BUS. ETHICS 179-186 (1992).

41 Ronald R. Sims, Hsing K. Cheng & Hildy Teegen. Toward a Profile of Student Software Piraters, 15 J. BUS. ETHICS 839-849 (1996).

42 Emin Babakus, T. Bettina Cornwell, Vince Mitchell & Bodo Schlegelmilch, Reactions to Unethical Consumer Behavior across Six Countries, 21 J. CONSUMER MARKETING 254-263 (2004).

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15-29 30-49 Diff. p value

1982 2.42 2.16 0.26 0.01645 **

1990 2.46 2.01 0.45 0.001222 *

1999 2.73 2.26 0.47 0.009714 *

15-29 50+

1982 2.42 1.60 0.82 1.68e-15 *

1990 2.46 1.62 0.84 2.869e-09 *

1999 2,73 1.90 0.83 6.327e-06 *

30-49 50+

15

1982 2.16 1.60 0.56 3.663e-08 *

1990 2.01 1.62 0.39 0.0007724 *

1999 2.26 1.90 0.36 0.0136 **

* Significant at 1%** Significant at 5%

Chart 2 shows the relative scores of each group for each survey. The youngest

group tends to have less opposition to tax evasion both compared to the other two age

groups and over time. Opposition to tax evasion has been less strong over time for the

other two age groups as well.

Chart 2 Trend by Age

0123456789

10

15-'29 30-'49 50+

1982 1990 1999

The next step was to determine whether the change in scores for each group

between surveys was significant. Table 5 shows the results. The only difference in mean

score that was significant was for the 50+ age group from 1982 to 1999. A comparison of

the mean scores for those two surveys revealed that the 50+ age group became

significantly less opposed to tax evasion between 1982 and 1999. However, to put things

16

into perspective, one must not lose sight of the absolute numbers. On a scale of 1 to 10,

the mean score for the 1990 survey was less than 2.00, meaning that there is still

significant opposition to tax evasion.

Table 5Tests of Significance – Age

1999vs.

1990

1999vs.

1982

1990vs.

1982

15-29 0.3662 0.1027 0.5703

30-49 0.1126 0.4781 0.3329

50+ 0.1399 0.01015* 0.144

* Significant at 5%

Religious Practice

The next step was to determine whether religious practices had any effect on the

attitude toward tax evasion. One might expect that those who attended religious services

more than once a week (MTOW) would be more opposed to tax evasion than groups who

attended services less often.43 The data collected by Inglehart et al.44 allowed this

assumption to be tested. Table 6 compares the mean scores for the various categories.

43 OM = once a month; NPN = never or practically never.44 HUMAN BELIEFS AND VALUES: A CROSS-CULTURAL SOURCEBOOK BASED ON THE 1999-2002 VALUES SURVEYS (Ronald Inglehart et al. eds., 2004).

17

Table 6Religious Practice Mean Comparisons (1 = never justifiable; 10 = always justifiable)

MTOW OM Diff. p value

1982 1.34 2.18 0.84 1.318e-07 *

1990 1.68 2.06 0.38 0.003368 *

1999 1.76 2.49 0.73 0.003449 *

MTOW NPN

1982 1.34 2.57 1.23 7.848e-12 *

1990 1.68 2.25 0.57 0.0003363 *

1999 1.76 2.74 0.98 0.0006036 *

OM NPN

1982 2.18 2.57 0.39 0.04839 **

1990 2.06 2.25 0.19 0.5726

1999 2.49 2.74 0.25 0.5678

* Significant at 1%** Significant at 5%

The data in Table 6 confirm the assumption that people who attend religious

services more than once a week are significantly more opposed to tax evasion than people

who attend services less frequently.

Chart 3 shows the trend for each of the three religious preference groups.

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Chart 3 Trends by Religious Practice

0123456789

10

MTOW OM NPN

1982 1990 1999

In each case the mean score for the most recent survey is higher than the mean

score for the earliest survey, indicating that opposition to tax evasion has eroded

somewhat over time. Table 7 shows that the difference is significant only for the group

that attends religious services more than once a week.

Table 7Tests of Significance – Religious Practices

1999vs.

1990

1999vs.

1982

1990vs.

1982

MTOW 0.3604 0.005068* 0.04627**

OM 0.1417 0.1059 0.8668

NPN 0.1022 0.5177 0.2014

* Significant at 1%** Significant at 5%

19

Marital Status

The last demographic to be compared and tested was marital status. Table 8

compares the various group means. The comparison showed that married people were

more opposed to tax evasion than divorced people for all three surveys, although the

difference was significant for only the first two surveys.

Married individuals were significantly less opposed to tax evasion than were

widowed people for each of the first two survey years but not for the most recent survey.

Table 8Marital Status Mean Comparisons (1 = never justifiable; 10 = always justifiable)

Married Divorced Diff. p value

1982 1.90 2.13 0.23 0.06672 ***

1990 1.82 2.33 0.51 0.002115 *

1999 2.01 2.11 0.10 0.6371

Married Widowed

1982 1.90 1.48 0.42 0.006165 *

1990 1.82 1.55 0.27 0.03488 **

1999 2.01 2.01 0.00 0.9971

Married Single

1982 1.90 2.59 0.69 8.491e-09 *

1990 1.82 2.28 0.46 0.0003849 *

1999 2.01 2.70 0.69 8.216e-06 *

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Divorced Single

1982 2.13 2.59 0.46 0.09861 ***

1990 2.33 2.28 0.05 0.8135

1999 2.11 2.70 0.59 0.0106 **

* Significant at 1%** Significant at 5%*** Significant at 10%

Married people were significantly more opposed to tax evasion than were single

people for each of the three surveys. Divorced people were significantly more opposed to

tax evasion than were single people for the oldest and most recent survey. Differences in

viewpoint for the 1990 survey were statistically insignificant. Chart 4 shows the trend by

marital status. The trends for the widowed and single groups were up over time, meaning

less resistance to tax evasion over time. However, the change between survey years was

significant for these two groups in only two cases. Table 9 shows the significance scores

for each comparison.

Chart 4 Trends by Marital Status

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10

Married Divorced Widowed Single

1982 1990 1999

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Table 9Tests of Significance – Marital Status

1999vs.

1990

1999vs.

1982

1990vs.

1982

Married 0.2088 0.2902 0.7795

Divorced 0.1742 0.6176 0.3717

Widowed 0.1423 0.09519* 0.8428

Single 0.08495* 0.4174 0.2697

* Significant at 10%

CONCLUDING COMMENTS

The study’s findings may be summarized as follows:

• There is not much support for tax evasion but opposition has declined over time.

• Women are more opposed to tax evasion.

• Men’s opposition to tax evasion has declined over time but women’s opposition

has remained constant.

• People become more opposed to tax evasion as they get older.

• People over 50 have become less opposed to tax evasion over time.

• The more frequently people attend religious services, the more opposed they are

to tax evasion.

• People who attend religious services more than once a week have become less

opposed to tax evasion over time.

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• Married people are generally more opposed to tax evasion than are divorced or

single people.

• Divorced people are more opposed to tax evasion than are single people.

This study confirms the findings of some other studies of gender and ethics but

runs contra to others. The present study also adds to the literature on the relationship

between age, religion and marital status and ethics.

It should be pointed out that there are some limitations to the present study. For

example, the samples were taken from people who live in the USA. Studies of other

sample populations might have different results. A study that gathered data by

anonymous surveys might yield different results than a survey that gathered results in

face-to-face interviews. Asking different questions regarding tax evasion might also lead

to different results. However, the present study does yield some findings that can be the

basis for the launch of other studies.

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