1. The effects of tax rates and corruption on tax revenues International comparison on OECD countries, 2000-2004 Mária Lackó Institute of Economics, Hungarian Academy of Sciences

2. Outline 1.My approach: the effect of tax rates on the labor market and on tax revenues are investigated in their combination with the effect of corruption 2.The effects of the labor tax rates combined with corruption on various segments of the labor market - employment rate - hidden economy ??? - self-employment rate 3.The effects of labor tax rates combined with corruption on the tax revenues 4.Shortfalls in tax revenues due to high tax rates with high level of corruption: related share is an indicator of the hidden economy

3. Tax wedge and corruption in the OECD countries, 2004

4. Tax wedge and employment rate, OECD countries, 2003

5. Tax wedge combined with corruption and the employment rate, OECD countries, 2003

6. Regressions explaining the size of the hidden economy

7. Regression equations explaining the self-employment rate, OECD countries

8. Tax wedge in Hungary, 1995-2004

9. Tax wedge and tax revenues, OECD countries, 2004

10. Tax wedge combined with corruption and the tax revenues, OECD countries, 2000-2004

12. Regressions explaining the tax revenues, OECD countries

13. Share of the tax shortfall from the labor taxes, %

14. Tax wedge combined with corruption and the tax revenues, OECD countries, 2000-2004

15. Tax wedge combined with corruption and tax revenues, OECD countries, 2004

16. Regressions explaining the tax revenues, OECD countries 2000-2004

17. Share of the tax shortfall from the tax revenues (income, social contr., consumption)

18. Shortfalls in tax revenues, % of GDP (2004)