Factors behind weak tax morale: the case of European Union countries

Abstract

This article investigates the theoretical and practical aspects of tax morale among households in European Union countries. The attitude of households on tax payment is assessed quantitatively by employing a dichotomous logit-probit regression analysis. The research is based on household-level data received from the World Values Survey and the European Values Study. Weak tax morale among European Union households is mainly determined by the perception of corruption, disrespect to one’s own country and parliament. Additionally, a household’s tax morale depends on age, gender, religiousness, level of income and education. Based on the findings of this article, a more precise policy guidance is presented.