Generational Differences in Perceptions of Tax Fairness and Equity

• In Event: Behavioral Tax: Fairness and Trust

Abstract

Generational theory research suggests that the arrival of the Millennial generation into adulthood will have significant effects on society because of their differing values and attitudes. We examine whether this generation has differing perceptions of tax fairness and equity than other generations by administering an instrument to a sample of 303 taxpayers, distributed approximately equally across three generational groups: Baby Boomers, GenX and Millennials. Each group answers a series of questions related to vertical equity, horizontal equity, and exchange equity. The results suggest that there are significant differences in the viewpoint toward vertical equity and progressive taxation among the three generations. More specifically, the Millennial generation were less likely to recommend progressive taxation than the other two generations. In addition, there were significant differences between the groups on an exchange equity question as well. However, in this situation, it was the Baby Boomer generation that was significantly different from the other two generations.

Authors

• Martha L Wartick, University of Northern Iowa

• Timothy J Rupert, Northeastern University

• Nancy-Susan Jurney, The University of Alabama