Taxation and its Effects on Democracy: Sweden and other Scandinavian Countries - Research Paper Example

People in democratic countries such as India and America are usually conducting protests against the government when tax hikes occur in their countries. On the other hand people in Scandinavian countries, especially in Sweden have not many problems in accepting tax increases. This is because of the fact that people in these countries have huge faith in their governments. They know very well that the tax hikes are intended for social security measures. In other words, people in these countries believe that they will get better services from the government if they allow the government of increasing taxes.

The aim of this research is to identify the role of tax in strengthening democracy and why people in some democratic countries protest against tax hikes while others accept it. The case study of Sweden is undertaken in this research to answer the research question; what is the relationship between tax avoidance and democracy? Only secondary research is undertaken for solving the above question.Even though various political systems are prevailing in different countries, democracy seems to be the most acceptable one for people all over the world (Fukuyama: End of History).

Norman (2005) has mentioned that democracy includes the presence of political and civil rights for citizens like freedom of expression, association, assembly, liberty, and security, etc. No other political systems give the same freedom and liberties to the people as democracy does. Today, democracy does not only stand for the “rule of the majority”, but also reflects the “protection of minorities”. For example, the evidence clearly shows that communist regimes rule people with an iron fist, a classic example being North Korea, whereas democratic governments function based on the interests of the people.

According to former American President, Abraham Lincoln, democracy is a “Government of the people, by the people, for the people”. On the other hand according to former British Prime Minister Sir Winston Churchill, “democracy is the worst form of government except for all others” forms that have been tried from time to time” (Good reads, 2013).