Does Experiential Tax Learning Matter? Evidence from College Students

Abstract

The authors use experiential learning theories to examine college students’ acquisition of tax knowledge and tax literacy. Tax knowledge is important because taxation affects virtually all adults, college students are often employed and subject to individual taxation, and understanding taxation and tax planning has both current and future implications for individuals’ financial well-being. Further, taxation is a key policy issue, and college student voters have the potential to impact tax policy choices. The results of this study show that real-world experiences improve college students’ understanding of tax concepts; this relationship holds for overall understanding and for understanding both current tax issues and tax issues that will have an impact in the future. The authors predict and find that a student’s socioeconomic status is positively related to understanding of tax concepts. The authors also find that the level of understanding of tax concepts is still limited; many students do not have a strong knowledge of tax concepts. The relatively low levels of understanding may have implications for structuring college curricula to improve tax literacy.

Citation

Moore, J., Perkins, J.D. and Jeffrey, C. (2022), "Does Experiential Tax Learning Matter? Evidence from College Students", Calderon, T.G. (Ed.) Advances in Accounting Education: Teaching and Curriculum Innovations (Advances in Accounting Education, Vol. 26), Emerald Publishing Limited, Leeds, pp. 137-154. https://doi.org/10.1108/S1085-462220220000026008