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DO HIGH TAXES KILL ENTREPRENEURSHIP?
Tax revenue vs new business formation
This compares countries' total tax revenue relative to GDP with the rate of new limited-liability business registrations.
Matched countries29
Pearson correlation0.02linear association
Spearman correlation0.13rank association
Across 29 matched countries, the linear association is very weak positive (Pearson r = 0.02); the rank association is very weak positive (Spearman ρ = 0.13). This is descriptive and not causal evidence.
Hover over a point for its country and the observation year for each measure. Australia is highlighted for orientation only.
How to read this
The input observations are the latest stored values for each economy and may refer to different years. This comparison is cross-sectional and descriptive; it does not establish causation.
Differences may also reflect income levels, business-registration laws, regulatory environment, demographics, access to finance, the economic cycle, institutional quality and cultural differences.
New business density counts newly registered limited-liability firms per 1,000 people ages 15–64. It is not a count of all startups, sole proprietors or self-employment. Country coverage can be partial; for example, the source notes limited geographic coverage for Canada and China.
Correlation describes association, not causation. No statistical significance or causal effect is estimated here.
Input datasets
X AXIS · OECD
OECD Global Revenue Statistics — Tax revenue as % of GDP
Each economy is matched by its ISO 3166-1 alpha-3 code using the existing published OECD and World Bank observations. Pearson correlation is calculated on tax revenue (% GDP) and new business density; Spearman correlation is Pearson correlation on average ranks (ties receive midranks). No country is matched by display name, and no missing values are filled.