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Gaetano Lisi
''Testing the slippery slope framework''
( 2012, Vol. 32 No.2 )
The aim of this short paper is to empirically test the key hypothesis of the ‘slippery slope' framework, namely: (1) trust (in) and power (of) tax authorities are both necessary to guarantee a high level of tax compliance; (2) the interaction between trust and power, as well as voluntary tax compliance, are crucial for increasing overall tax compliance; (3) the possibility that a “slippery slope” situation occurs and then a reduction of power and/or trust below a certain critical level significantly reduces tax compliance. We find empirical support for all of these hypotheses. Furthermore, we also find that trust is more important than power.
Keywords: tax compliance, tax evasion, power and trust
JEL: H2 - Taxation, Subsidies, and Revenue: General
Manuscript Received : Apr 04 2012 Manuscript Accepted : May 07 2012

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