Political Trust and Support for a Tax Increase for Social Welfare: The Role of Perceived Tax Burden

Abstract

Recent decades have seen a rapid increase in social welfare spending in South Korea. Along with rapid population aging and increased demands for social welfare programs, securing a sustainable level of taxation is becoming urgent. Thus, this study explores the factors associated with individuals’ support for a tax increase for social welfare expansion, focusing on political trust. This study also explores the role of perceived tax burden in moderating the linkage between political trust and individuals’ support for a tax increase for social welfare expansion. Using ordered probit and the 2019 National Survey of Tax and Benefit, this study found that political trust is positively associated with support for a tax increase for social welfare expansion. However, the positive effect of political trust decreases when individuals perceive their tax burdens as high. This study offers implications of the findings for policymakers such as simplifying tax codes and improving tax fairness for taxpayers.