AMERICAN POLITICS & PUBLIC POLICY WORKSHOP
Abstract: I investigate the relationship between misperceptions, (mis)information regarding the graduated nature of the U.S. personal income tax system — particularly, the difference between marginal and average tax rates — and tax policy attitudes. Less accurate perceptions of tax bracket mechanics are generally associated with less progressive income tax policy preferences. In an original survey experiment, I show that providing accurate information about the key differences between marginal and average tax rates changes perceptions of how individual groups might react to tax-related scenarios. However, it does little to move tax policy preferences, with the exception of reducing preferences to lower the tax rate on the bracket above respondents’ own current marginal tax bracket. Conversely, presenting respondents with a false narrative treatment equating marginal and average tax rates reduces support for the introduction of a greatly-increased new top tax bracket. These findings suggest that confusion surrounding marginal and average tax rates is not only pervasive, but can be easily exploited to reduce support for progressive tax policy proposals.
Patrick Sullivan is a postdoctoral associate at ISPS’s American Political Economy eXchange (APEX) program and an associated researcher at “The Politics of Inequality” Research Cluster at the University of Konstanz. His research interests include tax policy, economic inequality, and redistributive preferences. Patrick holds a PhD from the University of Konstanz, a master’s in public policy (MPP) from the Hertie School, and a bachelor’s degree in secondary education social studies from the University of Wisconsin-Madison, where he also majored in history, political science, and economics.
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