To summarise, the design of Nordic tax systems has over time created a ‘fiscal illusion’, whereby the public is not aware of the taxes they are paying. One can reflect on whether it is really in line with democratic principles to raise taxes in a way such that citizens are unaware of them. Interestingly, few proponents of introducing a Nordic model of high taxes in other countries stress that such a move would require hiding the true cost of taxation from the public.
-Nima Sanandaji
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