The Effects of Income and Consumption Tax Regimes and Future Tax Rate Uncertainty on Proportional Savings and Risk-Taking.

Key Points

• This research explores how different tax regimes and future tax rates influence proportional savings and risk-taking behavior.
• Conducted an experimental design to compare income and consumption tax regimes.
• Analyzed the effects on proportional savings and risk-taking under uncertain future tax rates.
• Income tax regime leads to reduced proportional savings.
• Income tax regime increases proportional risk-taking compared to consumption tax regime.