Big Data, Future Orientation and Taxes—How Tax Law Influences Personal Attitudes and Societal Values

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Abstract

Individuals both in their private lives as well as in their capacities as employees, employers, managers or self-employed businesspersons have to cope with or are at least concerned with taxes almost every day. This paper evaluates whether this permanent exposure to different aspects of a country’s tax regime influences an individual’s fundamental values, general attitudes and perceptions. Following the concept of future orientation as developed in sociological and cross-cultural literature these fundamental values and attitudes of individuals determine their predisposition towards business endeavours and entrepreneurial activities as well as their propensity to save and invest. Future orientation is thus a driver for economic success, innovativeness, happiness, confidence and competitiveness. The results of this paper suggest that taxes influence an individual’s degree of future orientation. Taxes thus do not only impact specific business decisions but do also affect individual’s basic attitudes, general perceptions and overall values and predetermine individual’s behaviour, investment and consumption decisions on a more basal level than previously addressed in scientific research. The paper provides three main results. First, it links online search activity and virtual behaviour to real world economic indicators and policy instruments. Second, it combines cross-cultural management and sociological literature with tax research and third, with this innovative approach the paper identifies tax policy measures negatively affecting individuals’ attitudes and perceptions towards the future and may thus assist in designing a tax policy mix that encourages future orientation while preserving tax revenues.

Author

• Matthias Petutschnig, WU - Vienna University of Economics and Business