Just Don’t Call it a Tax!

Abstract

Utilizing a simplified version of the Meltzer–Richard redistribution mechanism, we designed a laboratory experiment to test whether it matters if voters were asked to decide on a tax rate or a minimum income, leaving the redistribution mechanism itself unchanged. Framing the vote about redistribution as a decision about a minimal income increases the individually and ideally preferred level of redistribution. This effect outlives the groups’ deliberation processes and leads to the implementation of a higher level of redistribution.