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Freakonomics Radio

How to Hate Taxes a Little Bit Less (Ep. 400 Replay)

Mar 30, 2023
43:29

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Quick takeaways

  • Allowing taxpayers to earmark their tax dollars for specific purposes can increase tax compliance.
  • Providing taxpayers with a choice in how their tax dollars are used can incentivize compliance and encourage voluntary contributions.

Deep dives

The Power of Voluntary Giving

People are willing to give money to the government voluntarily if they support what the government is doing. This was observed in an experiment where participants gave money to a charitable organization. When the organization was a specialized charity like the American Red Cross, people gave more compared to giving to an anonymous person. This suggests that people are more inclined to give when they know their money will be used for a cause they support.

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