Skrmavbild-2013-01-22-kl.-16.36.06-222x300This question is the title of a new report on income, taxes and investments co-authored by Lars-Fredrik Andersson.

The report study investment and taxes in a number of OECD countries over de past 40 years, and show that the restruction of taxes under this period have caused the income gap to increase, with a sharp increase for those with highest income. As a side-effect, financial investments has increased, which might have contributed to increasing debt levels for both households and the public .

With this in mind, the report argues that a normalization of tax levels could be a way to finance policies for increasing demand for goods and services, and thereby increase employment levels. Further, this could be a way to finance such policies without contributing to growing debt levels.

Read the report (only in Swedish)