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A more progressive tax system makes people happier
Physorg.com ^ | Sept. 6th, 2011 | Association for Psychological Science

Posted on 09/09/2011 9:06:56 PM PDT by ConservativeMind

The way some people talk, you'd think that a flat tax system -- in which everyone pays at the same rate regardless of income -- would make citizens feel better than more progressive taxation, where wealthier people are taxed at higher rates. Indeed, the U.S. has been diminishing progressivity of its tax structure for decades.

But a new study comparing 54 nations found that flattening the tax risks flattening social wellbeing as well. "The more progressive the tax policy is, the happier the citizens are," says University of Virginia psychologist Shigehiro Oishi, summarizing the findings, which will be published in an upcoming issue of Psychological Science, a journal of the Association for Psychological Science. Oishi conducted the study with Ulrich Schimmack of the University of Toronto at Mississauga and Ed Diener, also at University of Illinois and the Gallup Organization.

The researchers analyzed the relationship between tax progressivity and personal well-being in 54 nations surveyed by the Gallup Organization in 2007—a total of 59,634 respondents. Well-being was expressed in people's assessments of their overall life quality, from "worst" to "best possible life," on a scale of 1 to 10; and in whether they enjoyed positive daily experiences (such as smiling, being treated with respect, and eating good food) or suffered negative ones, including sadness, worry, and shame. Finally, the analysis looked at the participants' satisfaction with their nation's public goods, from schools to clean air.

The degree of progressivity was measured by the difference between the highest and lowest tax rates, corrected for such confounding factors as family size, social security taxes paid, and tax benefits received by individuals.

The results: On average, residents of the nations with the most progressive taxation evaluated their own lives as closer to "the best possible." They also reported having more satisfying experiences and fewer discomfiting ones than respondents living in nations with less progressive taxes. That happiness, Oishi says, was "explained by a greater degree of satisfaction with the public goods, such as housing, education, and public transportation."

Higher government spending per se did not yield greater happiness, in spite of the well-being that was associated with satisfaction with state-funded services. In fact, there was a slight negative correlation between government spending and average happiness.

"That data is kind of weird," Oishi says. He guesses that the misalignment might indicate national differences in the efficiency with which those services are delivered or in people's relative ability to access them. For example, the U.S. spends more on education and health care than other developed countries, "but its international standing in those areas is not so great." Such puzzling findings may be illuminated in further research.

The study, like others Oishi has done looking at connections between economics and personal life, has important social implications. "If the goal of societies is to make citizens happy, tax policy matters," he says. "Certain policies, like tax progressivity, seem to be more conducive to the happiness of the people."

Provided by Association for Psychological Science


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society
KEYWORDS: taxytaxyjoyjoy
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I guess I'd be happier if others paid everything for me, too.

The US ought to be one of happiest places, as roughly 50% of all households don't pay income tax, simply due to all the rest doing so on their behalf.

This is a senseless study, but it will be used by "progressives" to bolster their positions.

1 posted on 09/09/2011 9:07:02 PM PDT by ConservativeMind
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To: ConservativeMind
Friggin physorg reads like algore’s toilet paper sometimes.
2 posted on 09/09/2011 9:13:49 PM PDT by allmost
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To: ConservativeMind

You forgot the barf alert.


3 posted on 09/09/2011 9:13:59 PM PDT by occamrzr06
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To: ConservativeMind
A more progressive tax system makes people happier -- Association for Psychological Science

The purpose of a university education is train the "prophets of socialism." -- From a book called "The History of Socialism" that I came a cross in a public library a half a lifetime ago. It was from the 50's or 60's, I'd guess, and it the bit I read detailed how socialism was to be propagated on a model lifted from the Church, with "prophets", "evangelists," and what have you.

4 posted on 09/09/2011 9:14:52 PM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: ConservativeMind
I guess I'd be happier if others paid everything for me, too.

Not if you had a conscience, you wouldn't. You'd be miserable.

5 posted on 09/09/2011 9:16:00 PM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: ConservativeMind

We’d need warp speed to reach these people. They’re pretty far out there.


6 posted on 09/09/2011 9:17:55 PM PDT by TwoSwords (Has anyone seen my suspension of disbelief pills?)
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To: ConservativeMind

What a load. I wonder if they polled Russia, China, Cuba and North Korea. Let’s see what happens when we get to the maximum levels of government control.


7 posted on 09/09/2011 9:18:38 PM PDT by KingKongCobra
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To: ConservativeMind

It is not a senseless study, but a BS study.


8 posted on 09/09/2011 9:18:57 PM PDT by richardtavor (Pray for the peace of Jerusalem)
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To: ConservativeMind

I would think that a flat tax would make more people happy or even national sales tax rate. Either one would work better then the convoluted tax code we have to live by.


9 posted on 09/09/2011 9:20:15 PM PDT by doc1019 (You do not need a parachute to skydive. You only need a parachute to skydive twice.)
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To: ConservativeMind
Photobucket
10 posted on 09/09/2011 9:20:32 PM PDT by Tzimisce (Never forget that the American Revolution began when the British tried to disarm the colonists.)
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To: ConservativeMind
The presumption of the left is that those who have or make more money than others are just ‘lucky’, if not greedy. There is no recognition for having worked harder, nor any admission that having less can be the result of making less of an effort. It's always someone else’s fault.
11 posted on 09/09/2011 9:23:46 PM PDT by pieceofthepuzzle
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To: ConservativeMind

“If the goal of societies is to make citizens happy, tax policy matters,” he says. “Certain policies, like tax progressivity, seem to be more conducive to the happiness of the people.”

So folks are happier if they pay more taxes?


12 posted on 09/09/2011 9:24:58 PM PDT by takenoprisoner (Constitutional Conservatism is Americanism.)
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To: ConservativeMind
The degree of progressivity was measured by the difference between the highest and lowest tax rates

That would seem to exclude those people who pay no income taxes. Looking at the simple different between the highest and lowest rates doesn't seem like a very good way of weighing the progressivity of a tax system. I think you would really need to look at the degree to which the rates are applied to taxable income as a whole. It's irrelevant regardless, IMHO, since the purpose of taxation is simply to pay for government.
13 posted on 09/09/2011 9:25:39 PM PDT by andyk (Income != Wealth)
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To: ConservativeMind

If it is true it is solely because they have convinced themselves that the government is the best way to provide for others what people ought to do either directly or through the Church. Outsourced charity is not genuine charity.


14 posted on 09/09/2011 9:27:13 PM PDT by newheart (When does policy become treason?)
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To: ConservativeMind

Of course they’re happy, they’ve learned to love Big Brother.


15 posted on 09/09/2011 9:28:57 PM PDT by ClaudiusI
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It’s true:

46 happy Pauls for every unhappy Peter.


16 posted on 09/09/2011 9:29:46 PM PDT by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
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To: allmost

Yes, Yes...

Envy and Jealousy are good for mental health. /s


17 posted on 09/09/2011 9:30:02 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: ConservativeMind

A heavy progressive or graduated income tax.

Plank 2.
Chapter II. Proletarians and Communists
The Communist Manifesto


18 posted on 09/09/2011 9:30:11 PM PDT by djf (One of the few FReepers who NEVER clicked the "dead weasel" thread!! But may not last much longer...)
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To: ConservativeMind

Are these that same people who tried to sell us “funemployed” last year?


19 posted on 09/09/2011 9:30:40 PM PDT by null and void (Day 962 of America's holiday from reality...)
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To: ConservativeMind

It would be great if everybody in the U.S. were able to participate in supporting the country in which they live. That means that everyone, yes even the streetcorner people, pay some amount of tax; that would be good for their self-esteem and good for the country.


20 posted on 09/09/2011 9:32:20 PM PDT by Rembrandt (.. AND the donkey you rode in on.)
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