[dmix]

How could tax evasion not be correlated to the rate?

It’s expensive to hide tax money, especially when you can’t use it for investments.

The higher the rates the more it’s worth the risk and difficult work it takes to hide it from the gov. Which typically involves two or three parties (the person paying you without the paper trail, you trying to hide it, and the bank or organization where you plan to hide it in).

[kartan]

> How could tax evasion not be correlated to the rate?

To make such a statement you need data. I can argue for the opposite to be true and an inverse relationship exists. Look for countries with very low taxes (like South Africa) and the to ones with high taxes (like Sweden). You will see that lower taxes correlate with higher evasion.

My data is not very rigorous. That is why I think that i requires further work to get to a conclusion. Can you present data that justifies your point?