Taxes plays a very critical role in todays countries economy. It affects essential public services like education, healthcare, transport and a lot of countries aspects. I would argue that applying taxes on a country brings more value to its citizens than what it takes from them.
One of the undesirable effects it might cause, is reduction of foreign investments which is considered a crucial part of any country’s economy. An investor is always looking for making high profit and little cost, so cutting money out its earned profit may cause them to search for a better alternative. For example, most big companies try to invest in countries that support investments and provide cooperative policies of taxes. Therefore, having high taxes on new businesses might not be a good idea in the long term.
On the other hand, when people pay money to the government, they get free public services, mainly education and healthcare. Both of those are especially important. If all people are educated this should maintain the countries development for the next generations. And regarding health, it feels more secure to live in a country with accessible care. These make the standard of living high which is reasonable for the amount people pay.
In conclusion, different countries apply various strategies of applying taxes to provide the public with the required quality of life. It is important for governments to consider the factors that contribute most to its economic situation, so if they need to enrich the job market with new businesses, it is vital to have better offers to investors regrading taxes.