New Academic Study Confirms Previous IMF Analysis, Shows that Lower Tax Rates Are the Best Way to Reduce Tax Evasion � International Liberty

New Academic Study Confirms Previous IMF Analysis, Shows that Lower Tax Rates Are the Best Way to Reduce Tax Evasion � International Liberty:

Leftists want higher tax rates and they want greater tax compliance. But they have a hard time understanding that those goals are inconsistent.

Simply stated, people respond to incentives. When tax rates are punitive, folks earn and report less taxable income, and vice-versa.

When tax rates increase, sometimes they engage in tax avoidance, lowering their tax liabilities legally.
When tax rates change, sometimes they choose to alter their levels of work, saving, and investment.
And when tax rates go up, sometimes they resort to illegal steps to protect themselves from the tax authority.