This article discusses the relationship between tax levels and economic development, highlighting that wealthier countries tend to have higher taxes, while emphasizing the importance of what citizens receive in return and the overall efficiency of the economy.
The article by Enn Listra, an emeritus professor and researcher from TalTech, explores the relationship between taxation and economic development, particularly within the context of Estonia and Denmark. It highlights that the tax burden in Denmark is significantly higher than in Estonia, which can be attributed to the economic growth levels of each country. The author suggests that while tax levels are important, they are not the most critical factor when considering economic success.
Listra emphasizes that what matters more to citizens is the value they receive in return for their taxes, as well as the efficiency of the economy. He argues that wealthier nations often have higher tax levels, which could indicate a robust economic framework that benefits the populace. This perspective reflects a liberal economic viewpoint, suggesting that a well-functioning economy, supported by an adequate tax system, can lead to a greater overall benefit for society.
Ultimately, the article encourages a reassessment of how taxes are perceived in relation to economic performance, advocating for the idea that liberalism in the economy, marked by effective tax use and governance, has indeed borne fruit, benefitting citizens and enhancing national prosperity.
