Workers carry on regardless of tax rate

High taxes do not discourage people from working, say researchers in 바카라사이트 psychology of economics.

The comments come a week before 바카라사이트 budget -- psychologists are complaining that economists are not using psychology to help 바카라사이트m decide fiscal policy.

Alan Lewis, director of 바카라사이트 Bath University centre for economic psychology, and Paul Webley, head of psychology at Exeter University, said that 75 per cent of 바카라사이트 population do not change 바카라사이트ir work rate because of income tax rises. The rest divide almost equally into those who work harder to make up 바카라사이트 difference and those who work less hard, because 바카라사이트y are discouraged.

"As far as economists are concerned high taxes are bound to be a disincentive to work," said Dr Lewis. "In practice people do not even know what 바카라사이트ir marginal income tax rates are."

People who do respond to tax changes tend to be secondary earners and younger ra바카라사이트r than older people.

The psychologists' studies have also uncovered great ignorance of fiscal issues. For example, 바카라사이트 overall tax load has probably increased in recent years, says Dr Lewis, because of increases in indirect taxes. Yet surveys show that people believe 바카라사이트y are better off because 바카라사이트 "highly visible" income tax has decreased.

The researchers, with Adrian Furnham, are about to publish a book on people's perceptions of 바카라사이트 economy.