chapter  6
23 Pages

Why Taxpayers Pay their Taxes

We first focus on the conservative argument that by reducing tax rates we create an incentive for people to work harder and longer so that government budgets can be balanced. This conclusion was tested in the 1980s and was proven false. Next, we will examine how conservative economists account for why people pay taxes and contrast that with an approach that combines self-interest with civic values to motivate people to voluntarily obey the tax laws of our country. Finally, we will outline a number of civilized policies that address the public policy concerns with taxes and taxpayers which we have identified.