Does the tax system ruin the motivation to seek advancement?

A number of hypotheses related to the effects of taxes and to social comparison processes were tested by means of a mail questionnaire in a study of 338 salaried employees, mostly in middle management positions. The results indicate that the tax system with progressive income taxes and increasing marginal rates of taxation did not serve as a significant inhibitor to the promotion will. Other factors such as the acceptability of the expected net salary raise in connection with a promotion, age level and the degree of social comparison influenced the promotion will and made the picture rather complex. People who wanted to be promoted were young, compared themselves with colleagues, had a relatively low income level and attached low importance to family and leisure activities.