The influence of tax labeling and tax earmarking on the willingness to contribute : a conjoint analysis

We apply conjoint analysis to study the influence of tax labeling and tax earmarking on German taxpayers' willingness to contribute. From a survey based sample we show that labeling and earmarking effects can substantially increase participants' willingness to contribute, which results in a considerable deviation from a pure consumption maximizing behavior. Furthermore, we give an explanation for this effect regarding socio-demographic attributes of German taxpayers. These results explain the variety in tax labels and provide implications for tax policy regarding further reforms of the tax and contribution system: "Labeling" and "earmarking" of contributions are important instruments in "selling" policies and increasing tax revenue. -- Behavioral Taxation ; Tax Labeling ; Tax Earmarking ; Willingness to Contribute ; Conjoint Analysis ; Perceived Tax Burden