The Impact of Chinese Taxpayers' Perception of Fairness in Tax Policy, Tax Burden, and Public Welfare on Tax Compliance

Zeng Yuchen(Faculty of Economics and Management, Liuzhou Institute of Technology)

Abstract

This study investigates the relationship between Chinese taxpayers' willingness to pay taxes and their perceptions of tax fairness. Utilizing quantitative methods with data from 351 valid questionnaires, the research examines how fairness perceptions across three dimensions—tax policy, tax burden, and the use of tax revenues for public welfare—influence compliance intentions. Control variables include tax evasion risk, punishment severity, the credit environment, and demographic factors. The findings reveal that perceptions of fairness, particularly regarding public welfare, significantly and positively impact the willingness to pay taxes. Furthermore, the three fairness dimensions are interrelated, suggesting that performance in one area can influence perceptions in another. The study also finds that the effectiveness of deterrent measures like punishment varies across income groups, being more significant for high-income earners. The results underscore that beyond enforcement, enhancing the perceived fairness of the tax system is crucial for improving voluntary compliance. Recommendations include strengthening the fairness of obligations and rights, improving the tax atmosphere, ensuring a equitable tax burden, and simplifying the tax system. The study acknowledges limitations related to the survey method and suggests future research incorporate interviews and additional variables like system complexity.

Keywords

Tax Fairness, Willingness to Pay Taxes, Tax Compliance, Tax Policy, Tax Burden, Public Welfare, China

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DOI: http://dx.doi.org/10.26549/jsbe.v8i1.35640