The implicit tax rate is higher when the coalition is small: in North Korea, with per-capita income around $600, the average tax rate is about 10%, whereas in the US a person with comparable income pays nothing — so the comparable-income person in North Korea pays a much higher rate to feed the leadership's rent-seeking demands.

factualpending

Speaker

Bruce Bueno de Mesquita

Evidence Quote

the person with comparable income or purchasing power parity pays much much higher tax rate in North Korea because of course they have to defeating the rent-seeking demands of the leadership

Source

Bruce Bueno de Mesquita on Democracies and Dictatorships 2/12/2007EconTalk
Created: 6/15/2026, 9:20:39 AM

My Notes

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