Framing in tax compliance

Framing Effect and Tax
Intervention Financial Products

Is threat the most effective way to enforce tax compliance?

Intervention Description

Researchers tested several different letter framings to alter tax behavior, including offers of assistance with tax forms, encouraging messages, and threats of audits. All of the treatments were effective in prompting taxpayers to declare more than they previously had. Unsurprisingly, the threatening messages were the most effective.

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