The Psychology Behind Taxation Discontent

What is the primary reason Americans dislike the end-of-year parking bill in the thought experiment?

• They preferred the old system

• They perceived it as a penalty

• Parking became less available

• The cost of parking increased

What psychological concept explains why people dislike paying taxes?

• Benefit awareness

• Social obligation

• Loss aversion

• Tax evasion

What is the estimated annual tax gap in the United States?

• $40.6 billion

• $406 billion

• $406 million

• $4.06 trillion

Who benefits the most from tax expenditures?

• The wealthy and corporations

• Small business owners

• Independent contractors

• Middle-class families

How long does it take the average American to file their taxes?

• 11 hours

• 1 day

• 11 days

• 1 hour

Which country is NOT mentioned as having a simplified tax filing process?

• Sweden

• Canada

• Netherlands

• Japan

Who is known for saying 'Taxes should hurt'?

• Ben Franklin

• Robin Hood

• Ronald Reagan

• A certain former President

What percentage of U.S. tax revenue equaled the gross domestic product, according to the Tax Policy Center?

• 24%

• 34%

• 44%

• 14%

What is the voluntary compliance rate a measure of?

• The percentage of people who pay taxes honestly and on time

• The rate of tax evasion

• How quickly taxes are paid

• The effectiveness of IRS audits

What do behavioral economists suggest to improve America's relationship with taxes?

• Increase penalties for evasion

• Increase tax rates

• Simplify filing and close loopholes

• Offer more tax deductions