Abolishment of personal taxation is adequate
Taxation has been around us for thousands of years. We have been finding different ways to put taxes on different things for the government to raise funds to purchase materialistic items from different countries and to provide subsidies to low-end people of the country. But do we really need the tax system? What if, the tax system has been abolished by many countries? What effects it may have on their country’s financial system?
First of all, we need to understand how taxation affects us. Taxation has a huge impact on the efficiency of work. This is because when the taxation is implemented on us, there is a decrease in income which leads to low expenditure on necessary items which are required to increase efficiency. As the efficiency hit its low mark, the ability to work also decrease. Ultimately, leading to low savings and investments. Since there is a low of taxes to be paid, taxpayers develop a feeling of the burden towards tax. This burden has a direct impact on willingness to work. Why work so hard for the money that is to be taken as taxes by the government. This problem leads people to not disclose their actual income i.e., generating black money.
NOTE: The taxes we are talking here about abolishing is the income tax and not the whole Tax System.
In the current world scenario, every country has some amount of black money with them. To recover that black money, the government can take one step closer to it by just abolishing the tax system. What effects will this have on a country? When taxation will be abolished, people will start to reuse their black money. And when black money will be used to buy different products from the market, more and more money will be used to purchase. And that will lead to an increase in the GDP of a country. And how will the GDP increase by abolishing the taxes? The government can simply imply one single tax system to the products on every purchase. This will lead to the income of the government.
A developing country like India, which has a huge income through agriculture, where there is no taxation on agriculture, will have a great impact through this system. Because of the unlimited tax-free system in agriculture, many people including politicians, convert their black money into white money. And despite being aware of this scam, income tax officers can’t do anything about it. And if the taxation system is removed, there will be fewer chances of an increase in black money, which can be used in the development of the country.
There are many other ways through which the countries can boost their productivity and income if the taxes are abolished. Tell us about what you think of the idea of the abolishment of the tax system. Hillary Clinton United Nations Narendra Neha Narula U.S. Department of State Tax Foundation