Fiscal Illusion

Fiscal illusion occurs when taxpayers or voters misunderstand or are unaware of the true costs of government spending and taxation. This leads to a perception that government services are cheaper or less burdensome than they actually are, often resulting in increased support for government programs or higher spending. This illusion can occur because taxes are sometimes hidden or distributed across different sources, making it difficult for individuals to see the full financial impact. As a result, governments might expand services or budgets under the mistaken belief that citizens are less aware of or less concerned about the costs involved.