The DDB Life Style Study® Uncovers What Makes an American a Tax Cheater

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Apr 11, 2011, 04:02 ET

CHICAGO, April 11, 2011 /PRNewswire/ -- It's fair to say that paying taxes doesn't rank as one of America's favorite activities. However, a recent DDB Life Style Study survey uncovered that while only 15% of Americans admit that they are likely to cheat on their taxes, the overall characteristics of this particular minority group are surprising – and in some cases, a little unsettling.

Demographically, the biggest difference between cheaters and noncheaters is gender. Of admitted cheaters when compared to noncheaters, 64% are men, likely to be single and under the age of 45.

"One might assume that tax cheaters would have lower income levels than noncheaters and that cheating on their taxes is an attempt to hold onto every cent they have coming to them," said James Lou, U.S. Chief Strategist, DDB. "We've found that there are no major differences in income between tax cheaters and noncheaters. However, there are significant differences in how they make their income last and how they view themselves."

Forty-two percent of self-identified likely tax cheaters described their financial situation as "one missed paycheck away from disaster" compared to 29% of non-likely tax cheaters. Moreover, cheaters are more likely to spend their money than save it, with 45% describing themselves as '"a spender rather than a saver'" vs. 32% of noncheaters.

"One possible explanation for tax cheaters' greater spending habits is that there is an overall belief that they are better than others and deserve to get whatever they want," added Lou. "We found that those who indicated they would likely cheat on their taxes also indicated that they are 'overall better than most people' at 46% vs. the noncheaters at only 27%. Tax cheaters are also more likely to believe that they are 'special and deserve to be treated that way' than noncheaters (52% vs. 42%)."

In addition, the DDB Life Style Study revealed that tax cheaters are significantly more inclined than noncheaters to engage in immoral behavior in other areas of their life. "Their willingness to cheat is not limited to their taxes but spans a wide range of situations and behavior where they are looking to get away with something," said Lou.

Tax cheaters are more likely than their noncheating counterparts to engage in dishonest or unethical behavior such as:


	Cheaters	Noncheaters
Working a job under the table while getting unemployment insurance	73%	20%
Keeping the wrong change given to them by a cashier	71%	3%
Asking a friend to pose as an ex-boss on a reference check	59%	13%
Lying about their income to qualify for free government aid	51%	5%
Wearing an outfit to an event and then returning it	46%	14%
Shoplifting	37%	3%
Filing a false insurance claim	36%	2%
Keeping a $20 bill they saw somebody drop	31%	12%
Taking money from their child's piggy bank	28%	8%
Lying about finding something in their food to get a free meal	26%	3%

"While it's understandable that no one likes to pay taxes, we were surprised to find that tax cheaters' overall willingness to engage in other unethical and illegal behavior is perhaps justified simply by their belief that they are special and deserve special treatment," said Lou.

About DDB

DDB Worldwide Communications Group Inc (www.ddb.com) ranks among the top five consolidated advertising and marketing services global networks, according to Advertising Age. Consistently one of the world's most awarded networks for creative excellence, DDB was Campaign's 2009 Global Network of the Year, the 2010 Spikes Asia Network of the Year, Eurobest Network of the Year, and Campaign Asia-Pacific's Creative Network of the Year, and captured both the Cyber Grand Prix and Film Craft Grand Prix at the 2010 International Advertising Festival in Cannes. With more than 200 offices in over 90 countries, the DDB Group helps grow the value and influence of leading brands around the world. We believe that creativity is the most powerful force in business, allowing us to develop ideas that people want to play with, participate in and pass along. We call this Social Creativity. DDB Worldwide is part of Omnicom Group Inc. (OMC).

SOURCE DDB Worldwide