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Electronic copy available at: http://ssrn.com/abstract=1138360
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).
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.
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.
4
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.
5
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).
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).
7
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).
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).
10
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
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).
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).
14
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.
18
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 *
20
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
0123456789
10
Married Divorced Widowed Single
1982 1990 1999
21
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
