The Relationship of Trust in Government and Taxes Compliance

1678 WordsFeb 24, 20187 Pages
The Relationship of Trust in Government and Taxes Compliance Introduction Why do we need to pay taxes? Taxes are used to manage and develop the country including economic growth, education, health, transportation, public welfare, defense and maintaining peace in domestic, developing infrastructure. Moreover, taxes are the salaries of government officers. Taxpayers are the citizens who have an income. In some countries, citizens who have high income, usually pay higher taxes. On the other hands, those with low income may not be taxable at all. When the law imposes a duty to pay the taxes of the citizens and the business then, it must have been authorized to perform its obligations for tax evasion or tax avoidance as well as the filing of tax or payment of tax under the law. However, there are some people who try to avoid taxes. From my perspective, taxes help to reduce a gap between classes in society, why most people want to avoid paying taxes. This paper will look at public trust to the government. It is true that power of the government to enforce tax discipline is important, but I believe that the willingness to pay taxes is also important. Power is exogenous to behavior, while trust is endogenous to government actions, as well as to the beliefs of fellow citizens about public disconsent of the government. Therefore, this paper will find the relationship between trust in government and taxes compliance. The hypothesis of this research is citizens are willing to pay taxes
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