World: Morale – Cheating on Taxes

Following up the series in understanding the people’s opinion on morale issues, World Values Survey asked the question like below:

Is it justifiable to cheat on taxes?

The answer in the scale form was given, running from 1-10, 1 being “never justifiable” and 10 being “always justifiable”. The mean score given from all the participants in the respective country is shown in the graphs below:

1) OECD/developed countries:

On average, Belgian gave 3.66 score out of 10, followed by people in Luxembourg (3.38), Greece (3.16) and France (3.06) to think that it is justifiable to cheat on taxes. If we look at their taxation rate here, it is not surprised to note that Belgian wants to cheat on tax (tax rate 55.4% for single person and 40.1% for family of 2 kids). On the other hand, the people in lower tax rate countries like Korea and Japan do not think that cheating on tax is justifiable. I guess may be they realized that the tax is not high enough to be cheated in the first place. Well, may be a regression plot between tax rate and the result above should be made and compared.

2) Selected Asia countries:

So, there are more people in Philipines think that cheating on taxes is justifiable compared to India and Singapore. On the other hand, most of the people in Bangladesh and Vietnam think that cheating on taxes is never be justifiable (the mean score is very close to 1).

As mentioned earlier, the taxation rate of each country is compared to the opinion of general public on the justification on cheating tasex: 2 types of taxation rate is compared here (a) single person (average earner bracket) and (b) family with 2 kids (average earner bracket). The scatter/regression plots are shown as below:
a) Single person:

b) Family with 2 kids:

Single person taxation rate is seemed to having greater impact on the cheating-on-taxes-justification opinion (Rsquare=0.358) than family with 2 kids earners.  

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