Study Finds Public Shaming Makes People Pay Their Taxes
A new study finds that publicly identifying and shaming people who don't pay their taxes gets better results than threatening fines.By Ben Levin | February 25, 2015
In 2010, Americans underpaid their taxes by at least $410 billion — an amount that, since then, has probably only risen.
It's more money than the personal fortune of Bill Gates times five, the market capitalization of ExxonMobil, or the GDP of South Africa. And, no surprise, the government really wants its money.
And a new study by researchers at the University of Michigan and Microsoft suggests that threatening fines — the usual way the government makes people pay up — isn't nearly as effective as publicly shaming them.