4 ms·
Not at all, taxes should be used to make investments in the economy where the market fails, a government that spends wisely will grow its economy and thus its t
by fleitz 11y ago
Not at all, taxes should be used to make investments in the economy where the market fails, a government that spends wisely will grow its economy and thus its tax revenue without changing rates. A tax dodge is not unlike a government with lower tax rates.
If the taxes not paid creates increased growth then tax will simply be made up in the future.
Imagine two countries each with a $1000 economy, both have a 50% tax rate, but in one country every person 'dodges' 50% of their taxes, if that country grows its economy at say 3% instead of 2% then after 100 years two economies will be at $7,386.22, $20,068.17 thus the country with the tax dodgers will collect ~$5K in revenue while the other collects ~$3.5K