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.