# Grudge effect

- Canonical URL: https://www.gerhardmerk.de/grudge-effect
- Post ID: 593411
- Modified: 2023-07-25T21:01:13+00:00
- Language: en

## Definition

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. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! 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/

## Machine-readable

- Generator: Merk Knowledge 1.1.1