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A more progressive tax system makes people happier
Physorg.com ^ | Sept. 6th, 2011 | Association for Psychological Science

Posted on 09/09/2011 9:06:56 PM PDT by ConservativeMind

The way some people talk, you'd think that a flat tax system -- in which everyone pays at the same rate regardless of income -- would make citizens feel better than more progressive taxation, where wealthier people are taxed at higher rates. Indeed, the U.S. has been diminishing progressivity of its tax structure for decades.

But a new study comparing 54 nations found that flattening the tax risks flattening social wellbeing as well. "The more progressive the tax policy is, the happier the citizens are," says University of Virginia psychologist Shigehiro Oishi, summarizing the findings, which will be published in an upcoming issue of Psychological Science, a journal of the Association for Psychological Science. Oishi conducted the study with Ulrich Schimmack of the University of Toronto at Mississauga and Ed Diener, also at University of Illinois and the Gallup Organization.

The researchers analyzed the relationship between tax progressivity and personal well-being in 54 nations surveyed by the Gallup Organization in 2007—a total of 59,634 respondents. Well-being was expressed in people's assessments of their overall life quality, from "worst" to "best possible life," on a scale of 1 to 10; and in whether they enjoyed positive daily experiences (such as smiling, being treated with respect, and eating good food) or suffered negative ones, including sadness, worry, and shame. Finally, the analysis looked at the participants' satisfaction with their nation's public goods, from schools to clean air.

The degree of progressivity was measured by the difference between the highest and lowest tax rates, corrected for such confounding factors as family size, social security taxes paid, and tax benefits received by individuals.

The results: On average, residents of the nations with the most progressive taxation evaluated their own lives as closer to "the best possible." They also reported having more satisfying experiences and fewer discomfiting ones than respondents living in nations with less progressive taxes. That happiness, Oishi says, was "explained by a greater degree of satisfaction with the public goods, such as housing, education, and public transportation."

Higher government spending per se did not yield greater happiness, in spite of the well-being that was associated with satisfaction with state-funded services. In fact, there was a slight negative correlation between government spending and average happiness.

"That data is kind of weird," Oishi says. He guesses that the misalignment might indicate national differences in the efficiency with which those services are delivered or in people's relative ability to access them. For example, the U.S. spends more on education and health care than other developed countries, "but its international standing in those areas is not so great." Such puzzling findings may be illuminated in further research.

The study, like others Oishi has done looking at connections between economics and personal life, has important social implications. "If the goal of societies is to make citizens happy, tax policy matters," he says. "Certain policies, like tax progressivity, seem to be more conducive to the happiness of the people."

Provided by Association for Psychological Science


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society
KEYWORDS: taxytaxyjoyjoy
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To: mylife

I’ll be sure to avoid them thank you very much.


21 posted on 09/09/2011 9:34:16 PM PDT by allmost
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To: ConservativeMind

Be happy Comrades, the others are more enslaved than you are.

22 posted on 09/09/2011 9:38:05 PM PDT by Navy Patriot (Holy flippin' crap, Sarah rocks the world!)
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To: mylife
It's a good site. It is hopelessly left leaning/stealing gubermint funds.
23 posted on 09/09/2011 9:41:46 PM PDT by allmost
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To: null and void

They would probably consider “funemployment” being ‘able’ to play video games all day, which is sadly what I do.

It’s not fun, nor do I prefer it to being employed. I’d rather go from not working to putting in 12 hours a day, from the word go, over continuing to play video games every day, for most of the day.


24 posted on 09/09/2011 9:41:46 PM PDT by wastedyears (Of course you realize, this means war.)
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To: wastedyears

Me too. *sigh*


25 posted on 09/09/2011 9:45:39 PM PDT by null and void (Day 962 of America's holiday from reality...)
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To: ConservativeMind

The constitution doesn’t guarantee happiness. It recognizes your right to pursue happiness. The tax code wasn’t written to make you happy, believe me.


26 posted on 09/09/2011 9:48:31 PM PDT by muir_redwoods (Somewhere in Kenya, a village is missing an idiot)
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To: ConservativeMind
Higher government spending per se did not yield greater happiness, in spite of the well-being that was associated with satisfaction with state-funded services. In fact, there was a slight negative correlation between government spending and average happiness.

"That data is kind of weird," Oishi says. He guesses that the misalignment might indicate national differences in the efficiency with which those services are delivered or in people's relative ability to access them. For example, the U.S. spends more on education and health care than other developed countries, "but its international standing in those areas is not so great." Such puzzling findings may be illuminated in further research.

Sounds like the "researchers" started with the conclusion a progressive tax is good and then just found a way to make the data fit. People might seem happy with any form of tax as long as the government is limited to what is in the constitution. When the people see diminishing returns from their taxes they become quite unhappy. Income redistribution results in negative returns as the ones being taxed get no benefits while those receiving the money never think it is enough.

27 posted on 09/09/2011 9:56:10 PM PDT by eggman (Presidential erase - Nov. 6, 2012. The end of an error.)
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To: ConservativeMind
A more progressive tax system makes people happier

Some of the most dysfunctional people on earth are psychologists.

Perhaps if each of them had a shrink . . . .

28 posted on 09/09/2011 10:05:09 PM PDT by DustyMoment (Go green - recycle Congress in 2012!!)
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To: ConservativeMind

Elementary Dr. Watson, it is called ENVY of the rich & successful.


29 posted on 09/09/2011 10:17:18 PM PDT by federal__reserve
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To: wastedyears

That has to be sarcasm;because if you are playing video games all day instead of looking for work,I have no sympathy for you.

If you are unable to work through no fault of your own that is different.

If you are playing video games all day and unemployed then I presume you have already sought employment at all establishments within your means of travel including janitorial ,flipping burgers,gas stations,,etc.And further that you have already done all the household chores ,mended everything broken that you can,exhausted the leads for jobs from all your family and friends,and helped any neighbor ,friend or family member who needs and wants your help with anything not criminal.

Because until you find a paying job,any paying job,looking for and getting that job, even if it means creating a job for yourself, should be your first priority.


30 posted on 09/09/2011 10:18:52 PM PDT by hoosierham (Waddaya mean Freedom isn't free ?;will you take a credit card?)
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To: DustyMoment

I think the whole mental health field has as many crazy people in charge as under “care”.


31 posted on 09/09/2011 10:22:16 PM PDT by hoosierham (Waddaya mean Freedom isn't free ?;will you take a credit card?)
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To: occamrzr06
"...You forgot the barf alert...."

I can help!

SPEW ALERT!


32 posted on 09/09/2011 10:26:55 PM PDT by rlmorel ("When marching down the same road, one doesn't need 'marching orders' to reach the same destination")
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To: ConservativeMind
"The more progressive the tax policy is, the happier the citizens are," says University of Virginia psychologist Shigehiro Oishi...

And surely as a part of the study you had to have at least 50% of the respondents be people who pay nothing, since that matches the actual societal profile - right?

So how'd that question go? "Are you happy with the amount [zero] of taxes you pay under a progressive tax"?

Good Lord, and these people call themselves professionals. Liberalism is shamelessly ugly.

33 posted on 09/09/2011 10:27:03 PM PDT by Talisker (History will show the Illuminati won the ultimate Darwin Award.)
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To: ConservativeMind

100% BS.


34 posted on 09/09/2011 10:33:24 PM PDT by NoLibZone (Democrats are violent. Prisons are overflowing with democrats convicted of violent crimes.)
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To: hoosierham
I hope you receive what you deserve
35 posted on 09/09/2011 10:39:04 PM PDT by allmost
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To: ConservativeMind

Who funded Shigehiro Oishi’s study?

Give him 150k and he will prove that Obama’s name cases cancer in mice.


36 posted on 09/09/2011 10:39:15 PM PDT by NoLibZone (Democrats are violent. Prisons are overflowing with democrats convicted of violent crimes.)
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To: ConservativeMind
The Big problem is that through the current tax code we are subsidizing reproduction. Both through personal exemptions for kids and school taxes on our property.

But if your Fed tax is $0, It most likely means you are slightly above poverty level. I'm so sorry for you.

We get payroll taxes, sales tax, gas tax, extra taxes on our utilities, property taxes(included in the rentals too),
Govt fees with auto registrations, and phone bills.

It's time to starve the pigs that tax us!!!

37 posted on 09/09/2011 10:52:27 PM PDT by NYTexan
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To: ConservativeMind

“Progressive” taxation is the only means by which the rich, who can buy anything else they want, are able to buy a government.

In the USA the top 10% of income earners pay 70% of all income taxes. And then We the People wonder how come we have an Oligarchy. We sold the government it to them!!


38 posted on 09/09/2011 10:54:18 PM PDT by mo
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To: mo

“government to them!!”


39 posted on 09/09/2011 10:56:23 PM PDT by mo
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To: ConservativeMind

Since when did it become acceptable to conclude that everyone and everything, except yourself, is responsible for your attainment of happiness?

Eons ago, a girl said to me, “You don’t make me happy.”

I left.


40 posted on 09/09/2011 10:57:28 PM PDT by Rocco DiPippo
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