Terence Kealey: Science Notebook
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David Cameron is right and his Conservative critics are wrong. People want to pay taxes. This was established by a team led by Ulrich Mayr, a psychologist at the University of Oregon. Mayr collected a group of subjects, gave them $100 (£50) each, and studied their brains.
He then used a technique known as functional Magnetic Resonance Imaging (fMRI) that allows scientists to monitor the activity of those parts of the brain that signal reward (the bits that light up when we eat, drink, and partake of recreational drugs and sex). And Mayr found, predictably, that people’s brains lit up when the $100 was paid into their accounts.
Less predictably, he discovered that when he transferred some of the money without permission from their accounts to that of a local charity (one that helps the poor), the subjects’ brains lit up again. People were pleased to be taxed for a good cause.
More predictably, perhaps, Mayr found that, when he invited his subjects to give money voluntarily to the charity, on so doing they registered even greater levels of brain reward: people like being taxed for charity, but they like giving money to good causes even more.
Few scientific papers deserve to be called important, but this one qualifies because it challenges so many political assumptions. First, it disproves the Left’s belief that only the state will succour the poor: actually, philanthropy is hardwired into our brains and, in the absence of state aid, private giving is biologically determined. As Nietzsche said, “we have a need to give”.
Secondly, of course, it disproves the Right’s belief that taxes are unpopular. Thirdly, it confirms the theologians’ doctrine of Original Sin, because the brain scans reveal that some people are innately more greedy and less generous than others – some brains brightened up only after the original gift of $100, whereas others really lit up only on the transfer of money to the charity.
And, finally, the paper addresses some tricky questions. Since the desire to help the poor seems to be hardwired into human beings, to what extent is private philanthropy “crowded out” or displaced by mandatory taxes?
And, since some people are innately mean, to what extent does taxation ensure that even they contribute to helping the needy? Further, since some people are, indeed, tightwads, to what extent do they ensure that tax revenue is simply redistributed back to the middle classes under the guise of philanthropy?
Mayr’s paper, which is entitled Neural Responses to Taxation and Voluntary Giving Reveal Motives for Charitable Donations, was recently published in Science magazine. It shows how the new science of neuroeconomics will soon transform social policy.
Terence Kealey is Vice-Chancellor of Buckingham University
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Just how much government (tax) funding did Mr Mayr receive in order to prove that tax is popular? Discount his results by that amount and you might find his answers reduce to a very nice round figure - 0.
Helping others is a choice. Any taxation beyond national defence, policing and road maintenance is theft.
KR, Stockport,
Mayr's paper "proves" or "disproves" no political beliefs. It merely demonstates that people respond well to giving.
But if a serious scientist like Kealey really believes this evidence constitutes proof of some public policy, his article is pretty good evidence of the disgraceful level of logic tolerated in the scientific community.
Michael Flanagan, Oxfordshire,
Over here in Germany, the money I donate to charity (three children's charities including UNICEF) is tax deductible. That's not why I donate over half a monthly income a year, though (and I work freelance). It's because it's good to know that I can help those worse off than me. Mind you, a lot of people in the UK would probably think I'm a charity case.
Tina, Duesseldorf, Germany
It is a methodological mistake to equate giving to a local charity to paying one's taxes. Would their brains have lit up by paying inheritance tax or 30% tax on the $100 cheque they had just received?
william, northwood,
Well, all those various assertions were worth about as much as the bizarre one in the middle about fMRI tests confirming the doctrine of original sin. People in general rush so irresponsibly into saying "hardwired into our brains" that I think the phrase must be hardwired into our brains.
Felix, Nottingham,
Giving to good causes makes people feel good? That's hardly a new idea; it's why we have had charities for centuries.
What people DONT like is having their money stolen by a load of incompetents for them to spend on their personal bigotries - or simply wasted!
Mike Bibby, St Albans, England -not EU
Where I work there is a payroll giving scheme whereby you can give money straight out of your pay and the donations appear on your monthly payslip. Perhaps this system could be adjusted so that for every £1 you donate to charity, possibly up to a limit, the amount of tax you pay could be reduced by £1.
Sam, Cambridge, UK
Taxes simply transfer money to govt officials. _After_ their salaries, offices, pensions & perks are covered, _then_ money is made available to those 'poor' who can cope with the regulations, forms, the officials themselves. We're repeatedly warned against advertising. Why do we have to swallow the propaganda that officials put out?
Sudha Shenoy, Birmingham Gardens NSW, Australia
You can't look at this study on its own. You have to also consider the studies done on tax rates etc - particularly marginal tax rates.
There are also social influences - different societies have different views about material items etc.
Andrew, Hitchin, UK
How does neuroeconomics address the more subtle questions?
Some people believe that subsidies create or preserve jobs. Others believe that subsidies deliberately keep one group out of work so as to preserve the illusion of work for another, more politically influential group.
My brain doesn't light up with joy when I'm taxed to keep Airbus limping along, and you don't need a brain scanner to know that. But can a scan tell you whether this is because I'm a skinflint, or because I'm irritated at the waste which is destroying, not creating, wealth overall? From the article it would appear not. Yet from the viewpoint of policy that question would appear to be far more important than merely whether I'm happy to give or not.
ian Kemmish, Biggleswade, UK
What about the other research paper (discussed in this week's Economist) showing that men are happy to give to charity but mainly when their contribution is noticed and they are seeking a mate, and that women are happy to work for charity, but mainly when their contribution is noticed and they are seeking a mate? Might this not indicate that any neuroeconomic study where people know they are being monitored may lead to false results? It seems to be the perfect example of the act of observation changing the object observed...
JS, Cambridge,
Cobblers.
More specifically, I'm quite prepared to be " taxed " on money which magically appears in my account. In order to really mean anything, this experiment would need to be repeated using people's own actual hard-earned. And let me tell you, if anyone transfers money from my account without my permission they'll have the benefit of my forcefully expressed views.
If neuroeconomics will "transform social policy" then let's try this. People whose pleasure centres light up on MRI scans when taxed should be taxed more [ well, they enjoy it so much don't they? ] while those of us whose brain regions associated with resentfullness light up when taxed should be spared the pain. Where do I sign up?
James , Canberra, Australia.
I think it is a highly suspicious conclusion that because people are happy to find that their money has gone to a local charity that proves they like to be taxed. Hardly anyone associates a local private charity with a government mandated program--only some of which, by the way, could be in any normal sense be considered "charitable." This kind of conclusion comes from predisposition toward result; it does not flow from a reasonable analysis. Faulty logic this.
Regarding the other question about government taxation crowding out charitable giving, there is certainly evidence that that is the case. The French give 1/20 as much in private charity per GNP as do Americans. Of course, Americans really invented philanthropy, and it is nice to see it beginning to spread around the world. It is probably also relevant to this inquiry that the religious amongst us give much more than the nonreligious.
Keep up the inquiry, but be careful about your conclusions
Truly yours,
Gary L Conner , Walnut Creek, CA