An Analysis of Individual Tax Morale for Russia: Before and after Flat Tax Reform

This paper examines individual tax morale in Russia before and after the introduction of flat tax reform in 2001. The World Values (WVS) and European Values Survey (EVS) are used to compare individual tax morale in 1999, 2006 and 2011. An ordered probit regression model is applied to study the effects of socio-demographic and institutional variables on individual tax morale. A new variable for employment sector that appeared in 2006 and 2011 values surveys is included in our model. The probit regression results revealed significant coefficients for income scale and the employment sector variables with negative marginal effects on tax morale. Socio-demographic variables have varying effects on tax morale while institutional variables are positively related to individual tax morale for the three years. To detect linear trend associations, Mantel-Haenszel hypothesis test results indicate that individual tax morale for Russia has not changed in the years before and after flat tax reform.

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