In addition, high tax rates are a disincentive to work and create incentives for tax evasion for both businesses and households, increasing the size of the underground economy. At the limit, high taxes and social contributions force businesses to move their businesses to countries with more favorable tax regimes.
David Dodge: Monetary policy report update Opening statement by Mr David Dodge, Governor of the Bank of Canada, at a press conference following the release of the Monetary Policy Report Update, Ottawa, 12 July 2007.