We perform an experiment to investigate how the fairness of decision making procedures
affects taxpayers’ income reporting behavior. According to our experiment, individuals tend
to report more income, and thus evade less tax when majority voting determines a tax rate
structure than when a dictatorship determines a tax rate structure. We also find that such a
positive effect of majority voting occurs mainly through individuals dissatisfied with the
current tax rate structure. These findings hint at a channel through which procedural
fairness works to improve tax compliance.