If not defined otherwise, the fact that when a direct tax is increased that is perceived as unfair – for example, on labor income; on the turnover of securities – those affected react by – reducing the quantity offered – in this case: fewer working hours through refusal to work overtime; (refusal to work overtime) shifting turnover into the shadow banking sector and into underground banking – or/and reducing the quality of the offer – for example, sloppy working; proper service only for large customers, institutional investors. – From this it is concluded that indirect taxation should be preferred in principle. – See flat tax, steering tax, speculation tax, Tobin tax.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/