Fred Folvary wrote: > But some of these activities would be unnecessary in a pure free market, e.g. > there would be no need to "promote" growth, because it would not be hampered > in the first place.
I agree. if the institutions (core activities of government) are necessary for economic growth I cannot see why they would not arise voluntarily - I was merely pointing out what I remembered to be the study's reasoning > > Secondly, even given core spending, this need not be as a tax on general > income or sales, hence the 20% would not apply. The optimal rate for growth > is a marginal tax rate of zero. No one has said ANYTHING about an income or sales tax of 20 percent (I suspect you are pushing some sort of personal agenda on that). The study merely stated that a government SIZE (overall tax burden on the economy) of 20 percent of GDP seemed optimal in terms of economic growth. It did not stipulate on what this tax should be levied yours Jacob Braestrup International Officer Danish Taxpayers Association
