Tax and Wellbeing: The impact of taxation on economic wellbeing

by Matt Grudnoff

It has been claimed that higher levels of taxation weaken the economy but a comparative study of 188 economies shows that higher levels of taxation are correlated with higher average income. The positive correlation also exists with other measures of economic wellbeing.

Please note: this report was updated on 8th December 2020, correcting an error in the description of Figure 3. This does not affect the conclusions of the report.

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