Deserving more? A vignette study on the role of self-interest and deservingness opinions for popular support for wealth taxation in Germany

Abstract

Abstract This paper investigates which factors shape popular support for the taxation of wealth in Germany, a country with one of the highest levels of wealth inequality in Western Europe. Although public support for progressive taxation in general is strong, no tax on personal net wealth is currently levied. Against this backdrop, we ask how objective and subjective self-interest, information about wealth inequality and deservingness valuations regarding the wealthy affect popular support for a personal wealth tax. Particular attention is paid to the interaction between self-interest and deservingness. Using original survey data and a vignette design, we find that subjective self-interest is more important than objective self-interest, and that providing information on aggregate wealth inequality can shift the attitudes of those who are otherwise indifferent in favour of wealth taxation. Furthermore, deservingness valuations impact support for taxation in important ways. Factors indicating meritocratic wealth accumulation reduce support, and this is especially pronounced among low-status respondents. By contrast, while non-meritocratic factors increase support for taxation, these effects are largely off-set in privileged groups. Altogether, these findings suggest that self-interest and deservingness valuations impact attitudes towards wealth taxation in opposing directions, and that providing information to those otherwise indifferent might increase redistributive preferences.