• DOI:10.1177/0956797611420882
• Corpus ID: 8211113

Progressive Taxation and the Subjective Well-Being of Nations

@article{Oishi2012ProgressiveTA,
  title={Progressive Taxation and the Subjective Well-Being of Nations},
  author={Shigehiro Oishi and Ulrich Schimmack and Ed Diener},
  journal={Psychological Science},
  year={2012},
  volume={23},
  pages={86 - 92}
}

• S. Oishi, U. Schimmack, E. Diener
• Published 1 January 2012
• Economics
• Psychological Science

Using data from the Gallup World Poll, we examined whether progressive taxation is associated with increased levels of subjective well-being. Consistent with Rawls’s theory of justice, our results showed that progressive taxation was positively associated with the subjective well-being of nations. However, the overall tax rate and government spending were not associated with the subjective well-being of nations. Furthermore, controlling for the wealth of nations and income inequality, we found that respondents living in a nation with more-progressive taxation evaluated their lives as closer to the best possible life and reported having more positive and less negative daily experiences than did respondents living in a nation with less-progressive taxation. Finally, we found that the association between more-progressive taxation and higher levels of subjective well-being was mediated by citizens’ satisfaction with public goods, such as education and public transportation.