TY  - CHAP
AB  - Abstract We conduct an experiment asking participants to choose to purchase either a traditional or hybrid car to examine how federal-state conformity of tax incentives impacts the decisions of taxpayers. We also examine perceptions of taxpayers surrounding federal-state conformity. Consistent with theory related to the effects of information environment and using an experiment in which taxpayers are asked to evaluate tax incentives related to a purchase decision between a traditional and hybrid car, we find that conformity is a significant factor in increasing the propensity to take advantage of the tax incentive. Specifically, we find that participants with simple and conforming federal-state incentives are more likely to take advantage of the tax incentive than with complex and conforming federal-state incentives. In addition, the effects of conformity between federal and state incentives suggest that participant perceptions of the federal system were heavily influenced by the actions of the state.
VL  - 22
SN  - 978-1-78560-277-1, 978-1-78560-276-4/1058-7497
DO  - 10.1108/S1058-749720150000022001
UR  - https://doi.org/10.1108/S1058-749720150000022001
AU  - Morrow Michaele L.
AU  - Rupert Timothy J.
PY  - 2015
Y1  - 2015/01/01
TI  - The Effect of Federal-State Conformity on Taxpayer Decisions
T2  - Advances in Taxation
T3  - Advances in Taxation
PB  - Emerald Group Publishing Limited
SP  - 37
EP  - 73
Y2  - 2024/04/26
ER  -