I'd think if taxes were really too high here in the US we'd rank better than dead last in size of shadow economy. Sure, corruption probably has more affect on the size of the shadow economy than tax rates, and many countries at the top of the shadow economy list specialize in corruption but many with lower corruption indices have larger shadow economies than us. This suggests that overall tax rates in the US are not exceedingly high by world standards, at least not high enough to drive business underground, so maybe we should stop seeing "Lower Taxes" as the solution to every problem.
Some Related Links:
[mahalanobis] [America's Shadow economy] [Shadow Economy #2] [Corruption Index ] [Corruption 2]
tnb
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