Dodging Taxes in the Old World

In the lore of tax collecting, there is nothing more enduring than the image of the wily French farmer hiding his earnings in his mattress or the Italian maintaining a separate set of books to deceive the state treasury. The stereotype is at best only partly true. As a percentage of gross domestic product, European taxes are substantially greater than those in the U.S.

A society as diverse as Europe's naturally produces many variations. The payments needed to support Sweden's welfare benefits would strike most Americans as confiscatory—a worker earning $ 10,800...

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