I love you, me neither! Our complex relationship with taxation
"Too much tax kills tax," says the famous phrase by American economist Arthur Laffer. But what if, for France, it were more complicated than that? Are there not other social, emotional, or moral considerations?
Cecile Bazart, University of Montpellier; Aurélie Bonein and Thierry Blayac, University of Montpellier
At a time of recurring public deficits, many of the solutions being discussed in public debate focus on combating tax fraud. Media coverage of this confrontation between wealthy taxpayers and the tax authorities often uses bellicose language that emphasizes the detection and punishment of fraudsters for the common good.
The bill presented in November 2025 is in line with this approach, with a threefold objective of "better prevention and detection, better enforcement and punishment, and better recovery." The political discourse aimed at restoring the legitimacy of taxation is based on the necessary crackdown on behavior deemed criminal.
While taxation has historically been the financial tool used to collect the resources necessary for the functioning of the state, it is nonetheless a complex social phenomenon. This is what our research highlighted. Because, alongside financial gain, many other social, emotional, and moral considerations explain our complex relationship with taxation.
Only 14% of taxpayers pay their taxes out of fear of an audit.
It is clear that monitoring alone does not deter fraud. Other motivations explain the choice between paying or committing fraud.
In our 2015 survey of 1,094 taxpayers conducted with Thierry Blayac, we showed that civic duty is the primary motivation for paying taxes. This was stated by 45% of respondents; 25% of them were motivated to pay their taxes because of the provision of public goods and services; approximately 10% paid because of more general moral considerations. In the end, only 14% of those surveyed said they paid taxes out of fear of tax audits and their consequences.
These findings on the diversity of motivations for paying taxes broaden the discussion on tax acceptance. They show that providing greater visibility on what taxes finance improves the way taxation is perceived. Indeed, 11% of taxpayers surveyed cited a lack of transparency on the use of funds as a reason for rejecting taxation. Taxes will be perceived more as an exchange than as a levy.
Our work also highlights that complexity hinders a proper understanding of taxation and increases fraud. For 21% of taxpayers interviewed, the complexity of tax legislation is a problem, while 13.5% consider the frequency of reforms to be too high and 10.5% consider administrative procedures to be too complex.
French tax system deemed unfair
Taxation is a social phenomenon. It is based on a vision of the relationships between individuals and solidarity within society. It binds taxpayers together, since fraud by some results in additional costs for others. This interdependence between citizens is the basis for the opposition between those who pay their taxes and those who commit fraud. It fuels the idea of tax injustice, which has a powerful effect. Our study highlights that the French tax system is generally perceived as unfair, with a score of 4.11 out of 10.
In a series of experimental articles, Aurélie Bonein and I demonstrated that social comparison can increase fraud. Information about the crimes of others increases fraud among others. More specifically, in this work, we tested two types of injustice in tax matters:
- Linked to a tax rate differential with the application of different tax rates to individuals who are identical for tax purposes, without further justification.
- Linked to the practice of tax evasion—some people evade taxes while others do not.
We demonstrate that while both types of injustice encourage fraud, the effect of social comparison is stronger than that of injustice related to tax rates. We can imagine using this fiscal reciprocity to create a social dynamic that encourages honesty, particularly if we send a signal that fraud leads to social disapproval.
Poor knowledge of tax matters
As taxation is a social phenomenon, it is also highly dependent on the country's tax history and people's understanding and perceptions of taxation. In the survey, we also tested our respondents' understanding of taxation.
It appears that taxpayers' perceptions are out of step with their knowledge, which stands at 33.44%, based on a few basic questions. This very low level of understanding of taxation does not support a perception of injustice. On the contrary, this bias leaves plenty of room for subjectivity and emotion. It calls into question the current underlying reasons for the loss of legitimacy of taxation.
Ultimately, is tax evasion a genuine challenge to taxation, or is it the result of misunderstandings and emotions associated with tax fatigue?
Cecile Bazart, Senior Lecturer, Montpellier Center for Environmental Economics (CEE-M), University of Montpellier; Aurélie Bonein, Senior Lecturer in Economics, Center for Research Economics and Management (CREM) and Thierry Blayac, Professor of Economics, Montpellier Center for Environmental Economics (CEE-M), University of Montpellier
This article is republished from The Conversation under a Creative Commons license. Readthe original article.