Quote from: Maslate on Today at 03:44:15 PM

Quote from: Fortify on Today at 03:33:12 PM

Quote from: Maslate on Today at 02:53:58 PM

We all know that as we earn income, we're required to pay taxes. Generally, the more you earn, the higher your taxes. But what about countries with weaker economies that don't strictly enforce tax laws? Would you prefer to live in such a place?

Let’s break this down: What do taxes actually do, and what are the pros and cons of living in a country where tax enforcement is weak? Overall, does this benefit the people, or does it ultimately make life harder for them?

I don't think that any tax authority is intentionally missing tax or undercounting but some systems are more thorough than others at capturing the right amount. I remember one Scandinavian country that actually publishes the income of everyone which should tell you if they are paying the right tax or living beyond their declared means. The citizens of some countries have actually got into the habit of underpaying and it almost becomes a point of pride in how much you can avoid declaring. However the most effective systems will plug the majority of holes and enforce it, otherwise you undermine collection rates across the whole system.

The people working in tax agencies are clearly capable, that’s why they were hired in the first place. But here’s the problem.. Even if they’re qualified to calculate taxes correctly, high corruption leads to weak enforcement.

For example:
Favoritism - Well-connected businessmen, especially those close to tax officers, often avoid paying the correct taxes.
Under-the-table deals- Some businesses get audited and penalized for underreporting, but instead of the penalties going to the government, the officers erase the liabilities in exchange for bribes.

If that is the case then something is wrong with that government, so if there are choices might be better to migrate to other countries as it will be a chaotic country as it's full of corruption and the only one benefiting are the oligarchs because they have like special privilege.

And who knows, those who are fighting fair in life and paying taxes will still be poor and the rich getting richer. I know that in life, it's not fair, but in this case it's totally different. Maybe they are using taxpayers money as well by some government officials without the public knowing.