Rethinking Local Choice: Experimental Evidence on Taxpayer Sentiment and Public School Funding

Original

Rethinking Local Choice: Experimental Evidence on Taxpayer Sentiment and Public School Funding

Edward N. Gamble, Richard G. Vanden Bergh, Thomas Chittenden

Abstract

ABSTRACT Taxpayers often have conflicting views on what constitutes fair taxation and how tax revenues should be allocated. We work with Vermont legislators on the policy concern of sentiment in a property tax setting, given the Vermont Supreme Court ruling around the principle of educational equality. To explore tax sentiment in a complex and highly regulated environment, we use a behavioral public administration approach for our experiment. Our findings are threefold: (1) we identify four central themes of taxpayer sentiment regarding property taxes: fairness and equity, transparency and accountability, responsible use of public funds, and the burden on vulnerable populations; (2) we demonstrate that taxpayer sentiment and agency are significantly shaped by how property tax revenue is allocated; and (3) we show how practitioner‐academic collaborations can address the tensions inherent in tax policy design.