Progressivity, Information, and Preferences

• In Event: Perceptions of Inequality & Fairness Beliefs: A Comparative Discussion

Abstract

The rampant levels of inequality in advanced democracies have triggered a wave of scholarship about their determinants and the potential solutions to correct them. Among the many reform proposals, specialists suggest a return to more progressive instruments of taxation of income and wealth. In this project, we are interested in studying the scope of political support for such potential reforms. Under what conditions do individuals, particularly high-income ones as potential contributors, support more progressive tax schemas? We claim that information about the progressivity of the current fiscal system and potential distributive outcomes under more progressive fiscal arrangements affects the preferences over redistributive tax and transfer policies, in other words, the ability of the governments to tackle increasing levels of income inequality. Through a survey experiment conducted in South Korea, we establish a strong and significant interaction effect between information on the progressivity of the fiscal system, individuals' income, and preferences for progressive redistribution.

Authors

• Asli Cansunar, University of Washington

• Pablo Beramendi, Duke University

• Hyeok Yong Kwon, Korea University