| dc.description.abstract | The factors shaping people’s preferences for municipal labour income tax rates
in Sweden were assessed, using survey data. The tax rate actually faced by
the respondents had explanatory power for their attitudes towards the tax
rate only when a few socio-demographic explanatory variables were included.
When a richer set of variables were included the association disappears. The
hypothesis that this small or nonexistent effect from the actual tax rate is
caused by a Tiebout bias finds no support, but IV-estimations indicate that
the actual municipal tax rate may be of importance for the attitudes towards
the tax rate. People with higher education, regularly reading a newspaper,
agreeing with the political left, and stating that they were satisfied with the
municipal services were less likely to want to decrease the municipal tax. People
with low income, stated low knowledge about society, and agreeing with
the political right were instead more likely wanting to decrease the municipal
tax. | en |
