In this post, I will look at what existing academic literature has to offer on questions of tax evasion and tax morale, in particular: Why do people evade taxes? And I’ll zoom in on how recent contributions adds to this scholarship.
Within tax economics, one of the central arguments for tax competition and low(er) taxes on capital, including corporate profits, is that it leads to increased investment and growth (at least in some countries, mostly small open economies). Why? In short, we know that corporate tax rates and rate changes have behavioural effects. Capital income may […]