Taxation and democracy

Mihai Mutascu

Journal of Economic Policy Reform, 2011, vol. 14, issue 4, 343-348

Abstract: Using a panel-model approach, this paper investigates the relationship between the level of taxation and democracy. The dataset covers the period 2002–2008, and includes 51 countries. The study suggests that a significant increase of taxes, without a major negative reaction of taxpayers, can be implemented if the political regime is strongly democratic or, on the contrary, strongly autocratic.

Date: 2011
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DOI: 10.1080/17487870.2011.635037

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