Well doesn’t that just piss all over Ritchie’s chips about the tax gap?

This paper presents estimates of the shadow economy for 50 US states over the period 1997-2008. Results suggest that tax and social welfare burdens, labor market regulations, and intensity of regulation enforcement are important determinants of the underground economy.

Higher tax and regulatory burdens increase the grey/black economy and thus make the tax gap larger.

It’s the Courageous State that causes the tax gap…..

7 comments on “Well doesn’t that just piss all over Ritchie’s chips about the tax gap?

  1. Ritchie: “High taxes do not increase tax avoidance”

    Then what the hell are spending all that time and money avoiding then?

  2. This is total sophistry

    Anyone with any common sense would realise that higher taxes and regulatory burdens reduce the amount of tax that is avoided

    High taxes remind people of all the good things that The State does

    These good things include administrating the increased regulation, such as county-by-country reporting, which is needed to enforce the higher taxes in the first place

  3. Paying people under the table has become a moral duty. The more money kept out of the hands of Murphy and his ilk the better.

  4. The results are so obvious (and self-evident) to any accountant with even a limited amount of small business experience that it is no surprise that Ritchie – an accountant (in theory, at least) with small business experience – would be completely unaware of said results.

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