In this paper, the phrase tax rate transparency describes the ease with which decision-makers can determine the rate at which their income is taxed. Prior experimental research has demonstrated that increased tax rate transparency results in better decisions (Rupert and Wright 1998; Rupert et al. 2003; Boylan and Frischmann 2006). This study contributes to our understanding of the effects of tax rate transparency by providing evidence on its distributional consequences. More specifically, this study provides evidence on who benefits from tax rate transparency, particularly when some individuals have access to better information about tax rates than others. Of particular interest is how those with limited access to information about tax rates fare in comparison to those who may have better information about relevant tax rates, and whether the private information that informed parties possess leaks out to the uninformed over time.

Understanding the effects of tax rate transparency is...

You do not currently have access to this content.