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?
If the country has a good government, then high taxes are very beneficial for everyone. In Germany, we have high taxes, we almost leave 50% of our salary into taxes but because of this, we have a very good health insurance, an unemployment insurance, paid sick leaves and a free education, which is the most important part of the development of any country.
The benefit of this tax system is that you don't live under constant stress and pressure, you don't worry about getting sick, you don't worry about losing job, your kids get help from the government too. For the society, this is very good but such a wonderful system doesn't come without significant flaws. The biggest negative side of this system is that it's nearly impossible to go from middle class to higher class, the more you earn, the more you pay and this is terrible if you are an ambitious person who wants to achieve something significant in life.