Billionaire Superstar: Public Image and Demand for Taxation

In the United States, there are 741 billionaires with a combined net worth of $5.2 trillion. These billionaires live highly public lives, with some achieving superstar status. Despite growing inequality, billionaires face effective tax rates lower than the average American. Is this due to a lack of public support for taxation? Is it due to misperceptions about billionaires’ lives and careers? To address these questions, we conducted a survey experiment with a sample of 9,013 Americans. We designed multiple treatments based on research on preferences for redistribution and arguments made by academics, journalists, and the general public to increase taxes on the ultra-wealthy. Our findings reveal significant misperceptions about billionaires, with individuals updating their beliefs in response to information. Contrary to expert predictions that all treatments would positively affect the demand for taxation, most treatments have a null or negative effect. Providing information about the lavish lifestyles of billionaires does have a robust positive effect on the demand for taxation.