FEATURE PAPER

Reducing Tax Code Noncompliance: Ethical Perceptions Using the Theories of Rest and Kohlberg

The following paper was written by Jeff Garmon and Jesse Mosgrove from Christopher Newport University. The paper was presented at the 2010 Small Business Institute Conference.

Abstract

Our study proposes that only after one understands the influences in the decision making process concerning tax evasion participation, namely theories established by Rest (1983) and Kohlberg (1969) will reductions in the occurrence of this unethical practice result. The main research question we pose is: What are the most effective means of reducing tax code noncompliance? Furthermore, we seek to identify the appropriate theories and principles by which taxpayers are to achieve this reduction in unethical behavior. We created and administered a preliminary (alpha) survey to 16 college students concerning the ethical issue of tax code noncompliance. The survey's purpose was to test the hypothesized theory that college students do not understand the topic of tax code noncompliance and the differences between tax evasion and tax avoidance. Upon receipt of results, a follow-up (beta) survey was conducted over the internet. This survey tested the same hypothesized theory as the previous survey, and 100 college students responded. A third (gamma) survey containing the same final questions was conducted online to determine if the results varied when all questions required forced responses. We present our findings and implications of the study in this project.

Introduction

The long-lived ethical issue of tax noncompliance remains at the forefront of problems society faces today. Arguments which validate tax evasion, as well as those which denounce the act,
exist in great numbers. These viewpoints range widely and the sources of justification explaining the occurrence include ethical, philosophical, psychological, and religious theories among many others. This paper does not intend to dispute the fact that the issue of tax code noncompliance is an ethically charged topic, nor that the practice of tax evasion is, by and large, unethical and immoral. Rather, this paper attempts to present a means of preventing tax noncompliance. Further support is provided by a survey conducted to ascertain how business students view the issue of tax code noncompliance and if in fact the college student understands the topic in its entirety. For the purposes of this study, the terms tax code noncompliance and tax evasion are synonymous.

(Read Entire Paper)

TIP OF THE WEEK

Selling to the "Starving Crowd"

In an interview, National Enquirer editor-in-chief David Perel revealed the secret of the tabloid's outrageous success: "The big news organizations tell people what they think they should be interested in, whereas we try to give them stories that they are interested in."

I think Perel has hit upon a key principle that applies to all marketing, not just the selling of tabloid newspapers. Namely, that your sales will be many times greater when you offer your customers information they want to read and learn-instead of the information you think they should read.

The late Gary Halbert went even further, advising marketers to sell exclusively to what he called a "starving crowd." A starving crowd not only wants what you are selling-but has an insatiable appetite for it. Therefore, even if there are a lot of players in that market, they can all do well, because the market's demand is a bottomless pit.

In particular, there are three "starving crowd" markets that have an especially consistent and unending demand for products and services related to their interest and needs:

Hobbyists. Hobbyists spend money on antique collecting or quilting not because they have to, but because they want to. Those who are heavily "into" the hobby, whether that hobby is calligraphy or macramé, can't get enough of it.

In these hobby niches, a lot of competition is a good sign, not a negative sign, for two reasons: (1) it proves that niche is viable. If others are making money selling to this market, you can too and (2) you can make joint venture deals with these other marketers to sell your products to their lists and vice versa.

Business opportunity seekers. There is an insatiable appetite for information on how to make money in your spare time, start a home based business, change careers, or earn a living without a job.

I believe these business opportunity seekers can be divided into two groups. The first group is doers. These doers are serious about changing their lives, and they actually pursue the course of action you recommend. The second group is dreamers. The dreamers enjoy learning about small business, yet take no action beyond buying and reading how-to information products.

You can't usually distinguish between these segments when marketing. But you really don't have to, because both consume an unending stream of info products purchased online.

Money making and investing. It is a nearly universal desire to make more money and increase one's wealth.

If you sell products, financial services, or advice that helps people get greater returns from their investments with less risk.or accumulate a seven-figure new worth.or become financially independent.you will never run out of eager buyers.

Of course, there are other starving-crowd niches for marketers, including: self-help, relationships, sex, health, beauty, fashion, fitness, and weight loss.

But the three above-hobbies, business opportunities, investing-are by far the largest and most active.

One of the biggest mistakes beginning marketers make is choosing, as their primary niche, a market that is not a starving crowd. The reason this is a mistake: without a starving crowd of buyers, you will always be fighting an uphill battle to peddle your products, services, and ideas.

And you will be forever frustrated that your prospects aren't buying your valuable material when you know it's stuff they absolutely should have.

But people don't readily do what they should do - or what you think is good for them.

They are much more easily convinced to buy what they already want, rather than what you think they need.

And when you select as your primary niche in marketing a starving crowd, like hobbyists, business opportunity seekers, or wealth seekers, you can sell your prospects the stuff they want - over and over again.

ANNOUNCEMENTS

Allied Academies International Conference

The Allied Academies will hold its Spring 2011 meeting in Orlando. Presentation dates will be Wednesday April 6 through Friday April 8, 2011. Conference Submissions and registration materials are due by March 1. Base registration, on or before March 1, is $300, late registration after that date will be $350. To provide you with maximum outlets for your research. From More Information,Click Here.

ICSB International Conference for Small Business in Sweden

You invited to attend the 56th Annual ICSB World Conference in Stockholm, Sweden. The conference will take place June 15-18, 2011. The deadline for abstract submissions has been moved to Jan. 31, 2011. For more information, Click Here.

Small Business Institute Journal: Volume VI

The Small Business Advancement National Center at the University of Central Arkansas is honored to be able to present to you the October Edition and Sixth Volume of the Small Business Institute Journal. Click Here

SBI Journal - Request for Papers And Reviewers

The Small Business Institute is now requesting papers and reviewers for the 7th volume of the Small Business Institute Journal. If you are interested in submitting a paper please visit http://www.sbaer.uca.edu/sbij/about.php to see the guidelines and submission procedure. If you are interested in becoming a reviewer or would like more information please email us at sbij@uca.edu.

NCIIA 15th Annual Conference

We invite you to attend the NCIIA 15th Annual Conference in Washington, D.C. March 24-26, 2011. NCIIA's Open is the premier conference for faculty and students involved in technology innovation and entrepreneurship in higher education. Explore the science, business and practice of catalyzing innovation in higher education. You'll have the opportunity to be part of the foremost community of thought leaders in these fields, take away tangible learnings from workshops taught by leading faculty innovators, make connections that will advance your work, see breakthrough technologies at our annual showcase of student innovations at the Smithsonian National Museum of American History, and experience Washington, D.C.. For More Information, Click Here

2011 Small Business Institute® Annual Conference

The Small Business Institute invites you to attend their 2011 annual conference which will be held in Bonita Springs, Florida. The conference will take place February 17-19, 2011. Conference tracks include accounting and finance, ethics and environmental responsibility, experiential learning, family business, global entrepreneurship, marketing social entrepreneurship, small business, and women & minority business. For More Information, Click Here

CONFERENCES

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