Tax compliance and wellbeing: an analysis with a global perspective

Abstract

Tax collection is the basis for the development of welfare states in the countries, in their social, economic and environmental aspects as well as guarantor of their happiness. The strengthening of tax morale and tax compliance of citizens is not only important to achieve the goals assumed by fiscal policy but also are part of the values that can generate a higher level of personal satisfaction. The objective of this paper is to provide a global overview of the changes that have occurred in tax revenues and their relationship with the greater or lesser degree of wellbeing achieved by citizens. To carry out this research, the databases of tax statistics offered by the OECD and the global index of sustainable development offered by the New Economics Foundation have been used. The results show that countries with greater tax collection on their GDP and with more solid tax structures also have high levels of welfare. Among the countries that show the best results are Holland and Norway, with high levels of happiness and tax compliance. However, we must highlight the important role played by the environment, which justifies the results reached by some countries, generally of lesser economic development. The evidence obtained has important implications for the design and application of fiscal policies in the world.