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?
Taxes are the main pillars for any government that help the government to provide subsidies to the public and proper functioning of a government. We earn, and in return we have to pay taxes in the form of income tax. Government uses this amount for our facilities like healthcare, education, defense and social welfare programs. Taxes help in redistributing the wealth in society, by receiving heavy taxes from wealthier individuals which helps in economic equality.
If someone chooses to live in a country where taxes are not enforced, they can get some short-term benefits but after that they will face long-term challenges. But if there is weak enforcement of tax, businessmen will be tempted because they have to pay just lower amount of tax. But after all, weak tax enforcement will lead to underfunded public services, like education, healthcare and infrastructure which are very crucial for quality of life. So, I will never choose to live in a country where tax enforcement is weak.