16/11/2004 5:18:58 pm
Less Work With High Taxes. A new empirical study by Professor Magnus Henrekson and Steven J Davis gives new evidence as to how taxes obstruct productive work. It will be part of a book published by the National Bureau of Economic Research. Based on empirical studies in the OECD countries, they find that 12,8 % in higher total tax pressure (standard deviation) creates the following effects:
- a 4,9 % drop in the employment ratio,
- an increase of the black economy by 3,8 % of GDP,
- 122 hours less productive work per person, and
- 10-30 % smaller business within economic sectors like household services, retail, child and elderly care, cleaning, personal services - that move into the households.
Everyone say that we have to work more, be more productive. So why do we have the highest tax pressure in the democratic world?