. His argument is based on the hypothesis that democracies can increase direct taxation, such as income taxes and capital … subsequently that regime's effect on taxation. The author then uses a two stage least square (2SLS) fixed effects to test our … correlation with democracy, and in turn democracy also has a positive effect on direct taxation as well as the ratio of direct to …

mode of taxation affects the present value of disposable income in the private sector. This violates their Barro …