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The Impact of Tax Price on Spending Preferences
Author(s) -
Robbins Mark D.,
Simonsen Bill,
Feldman Barry
Publication year - 2004
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.0275-1100.2004.02403005.x
Subject(s) - respondent , service (business) , jurisdiction , business , economics , public economics , marketing , political science , law
In this article, we explore the influence of tax price information on citizen preferences for taxes and spending using mail surveys. We explore the effects on service support when varying levels of cost information. We also observe how the magnitude of service costs influences service support. While the presence of cost information corresponded with lower levels of respondent support for the most costly services, it was associated with higher levels of support for less expensive services. These effects were the same whether the tax price represented the respondent's actual household cost or the jurisdiction average household cost for each service.