Overview
Behavioral insights on tax compliance reveal that understanding the psychological factors influencing taxpayer behavior can significantly improve compliance rates. By applying concepts from behavioral economics, policymakers can design interventions that encourage voluntary compliance, such as nudge...
Key Terms
Example: Behavioral economics explains why people might underreport their income.
Example: Automatically enrolling employees in retirement plans is a nudge.
Example: If most people in a community pay their taxes, others are likely to follow.
Example: Filing tax returns on time is a sign of tax compliance.
Example: Fear of audits can be a psychological barrier to tax compliance.
Example: Workshops on tax filing can improve taxpayer education.
Related Topics
Key Concepts
Behavioral EconomicsNudgesSocial NormsTaxpayer Psychology