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Abstract The innovation of progressive taxation in the early 20th century accompanied some of the largest increases in tax revenue in Europe and the US and is a core feature of most tax systems in today’s developed countries. In developing countries, however, states often use simplified tax instruments that are comparatively much more regressive. This project will explore the randomized introduction of progressive property taxation in the D.R. Congo, a low-income country with weak fiscal capacity. In collaboration with the Provincial Government of Kasaï-Central, the study will compare neighborhoods in the city of Kananga assigned to a proportional or progressive property tax rate schedule (treatments) to neighborhoods assigned to the status quo flat fee schedule (control). We will study effects on total revenue, household compliance, perceptions of fairness and tax morale, and general attitudes toward the government. Cross-randomized household-level information treatments will help distinguish between ability-to-pay and tax-morale mechanisms. The innovation of progressive taxation in the early 20th century accompanied some of the largest increases in tax revenue in Europe and the US and is a core feature of most tax systems in today's developed countries. In developing countries, however, states often use simplified tax instruments that are comparatively less progressive. This project will explore the randomized introduction of progressive property taxation in the D.R. Congo, a low-income country with weak fiscal capacity. In collaboration with the provincial government of Kasai-Central, the study will compare neighborhoods in the city of Kananga assigned to (1) a progressive property tax rate schedule, (2) a proportional schedule, or (3) the status quo flat fee schedule. We will study the effects on total revenue, household compliance, perceptions of fairness and tax morale, and general attitudes toward the government. Cross-randomized household-level information treatments will help distinguish between ability-to-pay and tax-morale mechanisms.
Last Published September 17, 2024 11:38 AM November 12, 2024 10:51 PM
Primary Outcomes (Explanation) See the analysis plan.
Public analysis plan No Yes
Building on Existing Work Yes No
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Bergeron et al. (2024)_PAP_Progressivity, Fairness, and Tax Capacity Evidence from the D.R.Congo.pdf
MD5: c023e47becb0cd560f80f84b73e4878e
SHA1: 1fd6f3d15d65eeb4977816a62da8dd097c553edf
Title Bergeron et al. (2024)_PAP_Progressivity, Fairness, and Tax Capacity Evidence from the D.R.Congo
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