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Why do people pay taxes? The answer is more complex than just laws and penalties. This episode dives into the behavioral science behind tax compliance, revealing how governments can achieve staggering results without new legislation. We break down three key strategies: the "nudge" targeting individual choices, the "budge" that shifts societal culture, and the "trudge" that focuses on motivating the system from within. Learn how these psychological tools are building more effective, trusted, and efficient tax systems around the world.
By World Bank Institute for Economic DevelopmentWhy do people pay taxes? The answer is more complex than just laws and penalties. This episode dives into the behavioral science behind tax compliance, revealing how governments can achieve staggering results without new legislation. We break down three key strategies: the "nudge" targeting individual choices, the "budge" that shifts societal culture, and the "trudge" that focuses on motivating the system from within. Learn how these psychological tools are building more effective, trusted, and efficient tax systems around the world.