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> The problem to me seems to be a budget balance issue: how can Governments pay for services that a large number of the population uses, but doesn't pay. If th
by tomp 12y ago
> The problem to me seems to be a budget balance issue: how can Governments pay for services that a large number of the population uses, but doesn't pay.
If the population doesn't pay, who does?
The way taxes work, is that the population pays the taxes to the government, and the government in return pays for/provides certain services. Taxation is basically just like insurance, coupled with some sort of progressive redistribution or wealth.
- antr 12y ago> If the population doesn't pay, who does? Like in most countries, including the US, budget deficit is paid with debt, and increase in taxes. That is the problem. The solution here is to uncover the underground economy, make them pay taxes (at reasonable rates), although this is no silver bullet.
- lazylizard 12y agoabout collecting taxes to pay for stuff..isn't it far easier to print new money than to collect old money back?
- antr 12y agoNot the best solution[0] but it's what happened[1]. [0] http://www.businessinsider.com/worst-hyperinflation-episodes-in-history-2014-4?op=1 http://www.businessinsider.com/worst-hyperinflation-episodes... [1] http://www.spiegel.de/international/europe/ecb-prints-money-for-greece-to-buy-time-for-athens-a-848989.html http://www.spiegel.de/international/europe/ecb-prints-money-...
- lazylizard 12y agothats printing plus taxing..and over doing the printing part? why not print as much as one would ordinarily tax? saves the trouble of employing 100s of 1000s of people to do the tax paperwork.. and inflation is in effect a wealth tax anyway...