4 ms·
More input implying more output is a poor model, because there is rule of law in the middle. input -> rule of law -> output is a more correct model. Maybe Rule
by hayst4ck 3y ago
More input implying more output is a poor model, because there is rule of law in the middle.
input -> rule of law -> output is a more correct model. Maybe RuleOfLaw(Taxes) -> [Output distribution] is better.
When rule of law is weak, the powerful arbitrarily exercise their power to shift the output to them. When rule of law is strong the output is used for the public benefit.
So the efficiency of taxes depends greatly on the integrity of the legal system and therefore integrity of the legal system must come before the expectation of the usefulness of taxes.
When the legal system has no integrity, money siphoned from taxes to private interests increases the power of those private interests which further hurts the legal systems integrity. So more (general population) taxes in the context of weak rule of law is damaging to society.
If you want to increase rule of law (reduce arbitrary exercises of power), then the less powerful must become more powerful (unions), the more powerful must become less powerful (tax the rich or ask the french), or the institutions of society itself must ensure that there are consequences for arbitrary exercises of power (the people in power choose to exercise it responsibly), or a culture that respects rule of law must pervade (only possible through education).