Here are my views on the Economic of Tax for Global Views, not specific to any region. This article was written after reading of Tax cuts in one of the worlds Best Economies- UK.
Pay Taxes, but why? As taxation is a way to develop a country or a state (in case a state is not supported directly by a country). Just think, if there is no Tax, how would country run ? Hence, to a limit tax cuts are needed at times, but there must be some measures that can support people in tough times, some of those are presented here. The measures are making economics active.
Cutting of taxes can be a temporary solution to the problem. But one must not forget that, how nations raised themselves to this day, it was all from tax money. This money is also referred to as taxpayers money. Taxing extra is also not good if there is no major spendings, and lower taxation can stop all work governments want to do. Imagine a town broken by flash flooding and you want the systems in this place to work fine sooner. How shall you ask the government about doing the repairs in this place you loved ?
Taxation can be thought of as a once in a year contribution by citizens towards nation building, towards utility building, climate resolutions and security – civil security & national security.
Hence, cutting off all taxation fully is never recommended if you are competitive on world stage to be on top economies. Aim is to provide money to people, in form of allowance, unemployment benefits, so on,…..
So how do people keep up with rising expense? Personal Loans. It can be with Allowance, Funds to needy citizens, health benefits free of costs, Government Efforts in Right Directions, cheaper energy bills, cheaper water bills, grocery supplies, personal loans at affordable paybacks,
Spending to make people work (if they like) or be employed, that is how they would earn more, create work in this ecosystem of economies. Work is also an entity in this economy. Creation of right jobs, at decent paychecks are needed. Increase in allowance as per tax cuts, contractual works, back to workplace alternatives to those who have gap years, and so on. As people work find right work, more shall be contribution to minor tax and more they would be independent. There would be money in hands of people & capability of government to help citizens, by taxation money, people donate. Some other solutions is to make economies active once again.
Something’s in Ecosystem of Economics should include vulnerable to be allowed not to be taxed, minimum limit below which people do not have to pay taxes.
How can we make economies active once again? Participate in the ecosystem of economics. How do economies worked. Earlier we used to have batter system, and it used to keep these small age old economies alive. Now, as the government help the needy with allowance, spending in economies may help the most vulnerable to even well to do.
How it helps to make economies active once again? This is an ecosystem of economies. Once money flows from the one person to other, and then they all paying in taxes. At the same time goods are exchanged, with money, and services are as well exchanged for money. All people are part of ecosystem of economics, to make economy work. So with spendings money rotate in Ecosystem of Economics.
The common people can be paid back by facilities by state, such as health benifits, care home, roads, rebuilding from climate atrocities, so on.
It works this way– You go and buy potatoes from market this makes money in hands of Potatoe seller, he adds this in his annual salary. He spends it on buying other stuffs, and money goes to other business or personal incomes. This money comes back to you in form of salary, business or unemployment benefits by governments. This is another Ecosystem of Economics, where we can’t ignore the crucial role of even potatoes seller.