There is a general consensus among both policy-makers and the general public that tax systems in induztrialized countries are too complicated and that it is generally desirable to have simpler tax systems. This raises the questions of why most tax systems remain complex and why it appears to be so difficult to simplify tax systems. From an economic point of view, there are arguments in favor of simple tax systems with broad bases and low rates, but there also exist several arguments endorsing a complicated tax system with many exemptions due to possible advantages regarding both equity and efficiency. In this project, we study preferences for tax simplicity using a representative survey of the German population. Exploiting randomized information treatments, we explore if preferences for tax simplicity may be influencedby making individuals aware of potential advanatages and disadvantages of complex tax systems. The benchmark for comparison will be a control group that is not provided any information.
01.01.2019 - 30.11.2019