Using multi-level modeling, this study investigates individual-level and contextual determinants of attitudes towards personal income taxation (PIT) in Central and Eastern Europe (CEE). While the politics of flat-tax reforms throughout CEE is intensely researched, little is known about the public’s attitudes towards tax policies.
Beyond investigating the effect of individual-level determinants known from previous research, this study reveals that past experience with unemployment increases support for progressive taxation. This indicates a strong ideational component in tax-attitudes formation. The national context also matters. Non-redistributive forms of PIT, such as the flat tax and lump-sum taxation receive more popular support in less developed countries of CEE, which are also most pressed to introduce policies signaling their commitment to the free market. Conversely, there are no signs of a policy-feedback effect. Once introduced, the flat tax does not appear to attract additional support for or opposition against non-redistributive forms of PIT.
