Do tax-related public policies influence the public’s approval of a democratic nation’s principal political leader? An application to the U.S

This study empirically investigates whether, in a democratic system, taxrelated public policies influence the public’s approval of their principal political leader. To begin this investigation, the case of the U.S. and the U.S. President is considered. In this context, it is hypothesized that federal income tax rates, real personal federal income tax exemptions, and perceived genuine tax reform efforts influence the public’s approval of the U.S. President. After allowing for a variety of political and economic factors, including equity market performance, inflation, and unemployment, it is found that the Presidential approval rating is significantly by all three of these tax-related issues. Thus, preliminary support for the hypothesis is obtained. Clearly, the hypothesis could be applied to other nations.