ABSTRACT
In economics, there is a concept referred to as the 120% rule. It is a theory based on the notion that no matter their income, people always believe an extra 20% will make all the difference in defining their happiness. A person making $20,000 per year envisions an easier life if only he or she could make $24,000. A person making $1 million per year imagines the magical things that would materialize with an income of $1.2 million. Tax cheats may rationalize similarly, telling themselves that freedom from those pesky taxes surely would supply that extra 20% and the happiness they envision.
