Video ID: _TqGQRMgJwg
YouTube URL: https://www.youtube.com/watch?v=_TqGQRMgJwg
Added At: 13-06-25 21:16:42
Processed: No
Sentiment: Neutral
Categories: Finance, Education
Tags: taxes, government, behavioral economics, experiment, rent payment
Summary
The speaker suggests that high-income earners should be allowed to use bus lanes as a way to make them happier about paying taxes. The government can offer privileges in return for higher tax payments, similar to how car manufacturers offer luxury features to attract high-end buyers. An experiment from Singapore and the UK shows that people are more likely to pay their rent on time when they receive gratitude texts.
Transcript
my joke suggestion was that people who pay higher rate tax should be allowed to drive in the bus lanes okay based on the observation that rich people are pretty happy paying for things if a small am so when you are poor a large part of your disposable income is spent on what you might reasonably called utility as you get richer what you might call relative status matters more than its absolute value and so if you look at car manufacturers the people buying from the top of the range are more interested in status and more interested in you know leather seats some heads up display and you know adaptive cruise control they're more interested in what you might call things you can show off about or things which are just novel whereas the poorer person is buying the car as a mode of transportation it struck me that government should play the same trick that car manufacturers do which is to say yes you pay a lot more tax but in return you get certain privileges so there's an experiment from Singapore which I think was adopted in the UK by a Housing Association which had trouble getting people to pay their rent on time they tried a variety of Behavioral e economic invent interventions but one of the most successful was simply every time you paid your rent on time you got a text saying thank you and that massively reduced the incidence of late payment so the phrase tax relief for example suggests that tax is a burden from which you have to be relieved it's not paying your Civic duties towards the maintenance of collective Goods [Music]