THE OBLIGATION OF A FLAT STAMP DUTY AS A SOCIAL JUSTICE ISSUE

Abstract

This article presents two studies, that examine the effects of procedural fairness, outcome favorability, and outcome fairness on the adoption of the Stamp Duty Act. Two-factor experimental studies were conducted with 2 procedures (fair vs. unfair) and 2 outcome favorability or outcome fairness. Study 1 found no effect of procedural fairness, with the level of tax decision acceptance dependent only on outcome favorability. Respondents accepted personally favorable decisions even when they resulted from unfair procedures. The effect of fair process was only related to outcome fairness, with tax decision acceptance resulting from fair procedures being higher, regardless of their consequences. The results show that outcome favorability has a stronger effect than outcome fairness.