Higher taxes are NOT the solution

[Alpha1999]

Many governments increase taxes with the hopes of correcting their mistakes. By "mistakes", I mean reckless spending, printing money excessively, etc. In some countries, taxes are high, while wages are utterly low. The end result? People get poorer, while the government continues to grow its coffers unfairly.

Instead of taking the "high tax" approach, why can't just governments control their spending? Like in the US, avoiding adding more burden to the national debt instead of increasing taxes or adding unnecessary tariffs. Or they can just tax the rich, while giving a "free pass" to the poor (or even reduce the taxes). Although, this is very unlike to happen.

What do you think? Your input will be greatly appreciated. Thank you.

In my opinion, the greater question is what is done with the tax dollars that are spent after collection. Increased taxes are a temporary solution for the revenue deficit  but if the government continues to be inefficiently spending, corrupting or borrowing funds the issue will just return. Tax reforms need to go hand-in-hand with spending reforms and accountability.

[abhiseshakana]

What do you think? Your input will be greatly appreciated. Thank you.

Learn from my country i think increase tax with its coercive power are the most rational and powerful instrument for correcting the budget deficit. With intro about government highest legal authority to collect taxes for public interest. People can only accept it with grumbling. So taxes are the most stable and measurable source of domestic revenue for maintaining fiscal sovereignty compare with other instrucment such foreign debt, budget expenditure cuts or printing money with have higher monetary risk.

I think hard in my country for spending control especially after the government implemented some social consumption policies. Every fovernment has mandatory spending that is difficult to rebalance. Many third world economy also has high dependence on government spending, excessively aggressive spending cuts can bring recession, as public purchasing power and government stimulus projects come to slow and then get sudden healt especially infrastructure spending for long natioonal term growth support.

I don't think implementing an unfair tax is a good thing because even my government establishing a special economic zone as tax havens for wealthy to move or store their asset with many benefit promoted. Taxes from low and middle income people, although small in individual value but it represent a large volume as the largest population segment in the economic pyramid and their existance match with government broad based tax policy.

[viljy]

An increase in taxes, which is usually felt most acutely by the poor, almost always leads to income hiding, as a result of which tax collection may even decline. Taxes should be raised primarily for the wealthy. This would be more effective. But... but... alas, that’s not how it works. Because the government always acts in the interests of the wealthy (either as part of their class or as a representative of their interests, completely dependent on them). Therefore, blind, constant tax hikes are a dead end.

[AmaGold70]

Many governments increase taxes with the hopes of correcting their mistakes. By "mistakes", I mean reckless spending, printing money excessively, etc. In some countries, taxes are high, while wages are utterly low. The end result? People get poorer, while the government continues to grow its coffers unfairly.

Instead of taking the "high tax" approach, why can't just governments control their spending? Like in the US, avoiding adding more burden to the national debt instead of increasing taxes or adding unnecessary tariffs. Or they can just tax the rich, while giving a "free pass" to the poor (or even reduce the taxes). Although, this is very unlike to happen.

What do you think? Your input will be greatly appreciated. Thank you.

Yes, in a country where tax rate is high, and majority of the citizens are doing very low paying job, it will not help to boost the economy, instead the economy will keep going down. The main reason why government collect task is to generate revenue, and use it for economic development, but while doing this, there should be consideration. The rich rich people should be tasked, and the revenue generated should be used to help the poor people in the country. It is true that when a country has incured lots of debt, in the cause of wanting settle these debts, they place heavy burden on the citizens by collecting very big task from them. When tax rate is too high, some foreign investors can withdraw their services, and go to other areas where tax rate is lower, so that is to say high tax rate can only lead to economic draw back instead of enhancing growth.

[Lucius]

~snip~
Instead of taking the "high tax" approach, why can't just governments control their spending? Like in the US, avoiding adding more burden to the national debt instead of increasing taxes or adding unnecessary tariffs. Or they can just tax the rich, while giving a "free pass" to the poor (or even reduce the taxes). Although, this is very unlike to happen.

What do you think? Your input will be greatly appreciated. Thank you.

Go back hundreds of years if you want and you will always notice that the government taxed the most those who had the least, all so that the rich who control the masses of people would have even more. The goal has always been to protect their position in power through the impoverishment of the lower classes, and to stifle any rebellion in blood.

Today, almost the same methods are applied, with the use of available tools such as the media, to keep people in fear of the government or other countries that are portrayed as enemies. Someone probably once said that people are like sheep and should be treated as such - because if 1% of people control 99% of people who blindly accept everything that is put in front of them, then it is no wonder that taxes are increasing and wages are decreasing.

[Agbe]

Op what you said in the subject is the fact. If really increasing taxation of the citizens was the solution for financial stability of the citizens and development of the country, it would be done for years back but it getting worst every government that comes in and increase the taxes and cost of living for the people. I think the best way of any government is to create enabling environment for the citizens both the poor and reach to do business. If possible remove tax from moat of the goods and businesses and let there be minimum taxation for taxable businesses.

In any economy, there are two major things to consider or do to develop a country. Human Capital which is should be the priority of every government because once the human are developed or empowered, they can develop the location and once the location is developed, it is the country that is developed. Therefore the first thing to do as good or a progressive government, empowering the humans is the first thing to do.

Then the second is the infrastructure. Government should tear roads to all the corners of the country so that the people he has empowered will have access to different places to develop the country. So the infrastructure is very much important in the development of the country. Once these are meant, other institutions can be build without stress. Some individuals who have done well can help the government to build schools and hostels to students. Giving scholarships and other humanitarian aids.

[EarnOnVictor]

Many governments increase taxes with the hopes of correcting their mistakes. By "mistakes", I mean reckless spending, printing money excessively, etc. In some countries, taxes are high, while wages are utterly low. The end result? People get poorer, while the government continues to grow its coffers unfairly.

Only an irresponsible government would be increasing taxes without duely measuring it up with the economic state of the country, especially the earnings and living standards. Many of those in power don't understand the economics around governance, but just want to make money for themselves and the government.

Unfortunately, the consequence is dragging citizens into more poverty, while the government continues to borrow. They will never be satisfied.

[Webutxo]

Many governments increase taxes with the hopes of correcting their mistakes. By "mistakes", I mean reckless spending, printing money excessively, etc. In some countries, taxes are high, while wages are utterly low. The end result? People get poorer, while the government continues to grow its coffers unfairly.

Instead of taking the "high tax" approach, why can't just governments control their spending? Like in the US, avoiding adding more burden to the national debt instead of increasing taxes or adding unnecessary tariffs. Or they can just tax the rich, while giving a "free pass" to the poor (or even reduce the taxes). Although, this is very unlike to happen.

What do you think? Your input will be greatly appreciated. Thank you.

A sensible government knows when to adjust tax and tax the poor less but there is a common thing I have seen in many countries, once a country is generating tax through a medium, even if the government is change multiple times, they don't consider reducing the tax, they have the mindset that when they reduce the tax, the government will not be able to generate money for expenditure and build projects, I still don't understand how and why they think that way.

I was very interested in the way Mayor of New York was campaigning before elected, his idea was to tax the billionaires and richer people and tax the poor less and the tax generated will be used to build projects for poor people, that's how to make economy sustainable for everyone. I'm not sure if he is able to do what he promised but the idea was a good one even though many wealthy individuals were fighting against him and discouraging people not to vote for him.

[panjul07]

In general, I agree with the main point that the government should control their spending effectively before trying to increase the tax.
As an Indonesia citizen which has a close relation about taxes since the main income of the government is from taxes, the main problem is not really about how high the taxes are but more about how the government spend the money which mostly come from taxes effectively and responsibly.
Here in my country, taxes increased regularly but people's average income remains low  while on the other side, the government spend the money badly for many useless things.
One thing that I know from most people in my country is not that they are against higher taxes but more about what they got from the government while they pay taxes  routinely.

[Mr_Brilliant$]

Tax the rich. As I saw that statement I laughed. If you tax the rich more and give free pass to the poor, the high tax if the rich will still affect the poor. The services rendered by the rich that the poor are using will now have increase in price. So you can see that the poor will still be the once to pay for the high tax, not even the rich will be bothered. The cost of their goods will just go up too as the tax the rich higher. So taxing the rich more is just not the way to go.

[PERtua]

I believe the question is not just how much tax a government collects. But whether or not it's spending effectively. While reducing wasteful spending is crucial. Governments should also invest in areas that can boost the economy and boost. Employment. Tackling the richest of the rich may be a step forward. But they aren't the sole solution to all budget issues. A fair system should safeguard low income households and at the same time public funds are allocated in an accountable manner. If not higher taxes can be more of a burden than an answer to the problems that necessitated the deficit in the first place.

[MArsland]

What do you think? Your input will be greatly appreciated. Thank you.

I agree to tax the rich, while the poor are given relief and focused on getting more space to work, education, capital, trying to improve life and then if it comes to the stage of increasing income it will automatically be taxed again. That way wealth taken from the rich in the name of taxes contributes to the economic betterment of the poor. Unfortunately in practice the theory that is not implemented seriously by all levels of government will never be able to create prosperity.

[Rabata]

An increase in taxes, which is usually felt most acutely by the poor, almost always leads to income hiding, as a result of which tax collection may even decline. Taxes should be raised primarily for the wealthy. This would be more effective. But... but... alas, that’s not how it works. Because the government always acts in the interests of the wealthy (either as part of their class or as a representative of their interests, completely dependent on them). Therefore, blind, constant tax hikes are a dead end.

Just increasing the tax rate will increase the government's revenue - it is not that simple. When the income of the common people remains the same but they have to pay for food, fuel, and daily purchases, then the pressure ultimately falls on the people with the highest income. Again, if there is excessive pressure on small businessmen, many start transacting outside the accounts, as a result, the government can lose tax. In my opinion, in addition to collecting taxes from owners of high income and large assets at a fair rate, it is also important to close the opportunities for tax evasion. Many times it is seen that it is easy for an ordinary employee to deduct taxes, but even those owners who have a lot of assets use the loopholes in the law and pay comparatively less tax. So the problem is not only who is paying how much, but how fair it is. If the government reduces waste before increasing taxes and uses the collected money properly for public services, then the interest in paying taxes may increase among the people.

[abhiseshakana]

In general, I agree with the main point that the government should control their spending effectively before trying to increase the tax.
As an Indonesia citizen which has a close relation about taxes since the main income of the government is from taxes, the main problem is not really about how high the taxes are but more about how the government spend the money which mostly come from taxes effectively and responsibly.
Here in my country, taxes increased regularly but people's average income remains low  while on the other side, the government spend the money badly for many useless things.
One thing that I know from most people in my country is not that they are against higher taxes but more about what they got from the government while they pay taxes  routinely.

I'm often left speechless by all the tax issues in our country. Starting with the outrageous corruption by tax officials from staff level up to the top executives. As a person becomes wealthier, their tax liability does not increase, instead, it is structured to decrease, thereby allowing for larger illicit payments into the pockets of unscrupulous tax officer. Officials with integrity are dismissed, while those who participate in the culture of systemic corruption are retained. Taxes are steeply progressive downwards but regressive upwards, reckless spending of tax revenue, government's insensitivity to the public's economic capacity to pay taxes and a pile of other problematic issue.

From Indonesia tax practice, as citizens i surely said that we don't have good governance, even maybe government successfully collect taxes but not accompanied by wisdom and intelligence in spending it. matter of fact our government failed transforming tax revenue to be human capital improvement, economic infrastructur development, economic opportunities, social protection and public trust, because until today we see none tangible benefits and even dissapointed.

[uneng]

Decreasing taxes and controlling debt demands work and effort, which are things people in power positions aren't willing to do. They want to live like the nobility of medieval times, and politics is the mean to that goal.

Their only concern is if the masses are calm and peaceful doing their job to maintain the pyramid going on obediently. In case the masses are disturbed and angry, then governments just adjust the dosage of "bread and circus" available to them.

After all, it's like a civilization simulator game, like Caesar, where you manage the city, set tributes and don't let the citizens get mad on you.

[sebiesz]

taxation is only one part of the equation imo. licensing, transparency, consumer protections, and enforcement seem just as important when talking about casinos and sportsbooks like vega.

[jcojci]

The government thinks by increasing taxes, they could get more money but they don't think that the citizen could be suffers by that because their income are not increases and they have more fees to pay. The government doesn't think to check their spending and re-manage it to know which cost they can reduce.

The idea to tax the rich, higher than ordinary citizen could be good because their are more than people. They shouldn't protests because they get many easiness from the government to make a big profits.

Ordinary people can't do anything except follow the rules but the government should remember that their citizens will have limit how long they can be patient. The government should not push their citizens but fills their basic needs and not increasing taxes and if necessary, the government can reduce taxes for them but increasing taxes for the rich.

[viljy]

Tax the rich. As I saw that statement I laughed. If you tax the rich more and give free pass to the poor, the high tax if the rich will still affect the poor. The services rendered by the rich that the poor are using will now have increase in price. So you can see that the poor will still be the once to pay for the high tax, not even the rich will be bothered. The cost of their goods will just go up too as the tax the rich higher. So taxing the rich more is just not the way to go.

The tax on the rich seems funny to some people... Meanwhile, not so long ago, Putin asked every oligarch to voluntarily donate several tens of billions of dollars (to gift to the state). None of them refused (there are no fools). The important thing here is not to donate too little, otherwise you might later fall out of favor with the president.

And there will be no consequences for the poor from this. Because: A. prices always rise anyway; B. all the oligarchs’ incomes come not from the domestic market, but from selling resources to China. So, taxes on the wealthy are quite a viable option (even if they’re called voluntary donations, contributions, etc.).

edit: tens of billions, of course, together from all of them, not from each one individually.

[Dogedegen]

The point is, in countries where the government is dishonest and unable to manage the country, they will certainly continue to raise taxes. However, this is a bad step, because it is essentially a huge burden on the people. So it is clearly not a good solution, because raising taxes will clearly increase the price of all goods in the country, and that will create new problems.

So that's why I am also often surprised by the mindset of people in government who are like that. Because currently in my country, the system is like this, where taxes are continuously suppressed, while the minimum wage for the people has not increased at all. So, in my opinion, it is clearly unfair because it is clearly unbalanced. And what annoys me even more, in the country where I live, the natural resources and also the taxes at a normal level would certainly be enough to build everything.

But because of corruption, everything is destroyed and that clearly makes me very angry. But yes, what can I do, I am just an ordinary citizen and can not do anything. So, the point is, high taxes and the results are corrupted by people in government are clearly even worse.

I agree with your point, but I question how you wrote this. Your sentences make the implication that there are many countries where the government is honest, or that it is only dishonest in a few countries. Which are the countries where the government is not dishonest? I do not know any single one. This seems to me to be a standard problem that we can find in each country! The primary difference is probably related to how bad is the problem in some countries. In some countries they might be stealing 20% of the budget where possible and in others 50% or more, that is the primary change.

You can try to look for countries that are actively trying to lower the taxes. I do not mean some single taxes, or some one time moves to score some political move. Which government has a long term strategy where they try to make them very efficient and lower taxes? I do not know any place where this is happening. Progress is sadly very slow but it could be very fast if things were run the right way..

[Unknown Op]

When government is spending without any proper way and they are spending inefficiently then increasing taxes is not a solution. The problem is never about the tax rate itself but about how it is being collected and how it is being managed. Governments need taxes to generate revenues for the education sector, medical services, basic amenities and also for other public services. Government do not cut down their expenses but take down the taxes then they actually make debt worse. Meanwhile an excessive amount of taxes makes investment difficult it also discourages purchasing power and puts a lot of pressure on people who have low income. Better ways to control unnecessary spending and reduce corruption also improve transparency and design of your tax system.