In recent years, tax rates have been steadily increasing. Consequently, many have expressed that they do not wish to pay a substantial amount of their hard-earned money towards direct taxes. Meanwhile, others contend that the proceeds from tax are utilised in the citizen’s best interests. I partially agree with the former as I believe both of these views raise concerns that are valid in their own places.
The proponents of abolishment of taxes can argue that it is becoming increasingly difficult for them to save money due to the heavy taxations on their salaries. The middle-class specifically are often left with little to no money to allocate towards investments or savings after paying for both essentials and bills. Furthermore, government corruption in some countries means that tax revenue is not always used efficiently, resulting in poorly maintained infrastructure and inadequate public services. In India, for instance, it has been reported that the bridges and roads sometimes collapse due to not being maintained which is the aftermath of corrupt politicians hoarding tax incomes.
Granted, it is tough to remain positive about contributing to tax income given the situation; however, if tax was not a mandatory levy, the gap between the rich and poor would widen further. Tax funding enables essential infrastructures such as healthcare, education or transport links, which is accessible to people of all backgrounds. By eradicating income tax policies, quality education remains accessible to only higher income individuals. As can be perfectly exemplified in South Africa, where it is often reported that the destitute population have no access to essentials like education or healthcare as a result of the middle class refraining from paying taxes which renders the state with no funding to facilitate public services.
On balance, while the concerns regarding heavy tax-burden are valid, income tax is not only important to sustain public services but also for bridging the gap between high net-worth people and the impoverished population. However, a balanced approach is required where the tax is lowered and corruption is reduced to ensure the satisfaction of all citizens.