The issue of whether individuals should not pay tax to the state and save all of their money that they earn is more beneficial or detrimental has become a subject of intense debate in temporary word. While this trend offers notable benefit, particularly in the term of personal wealth, it also brings about significant drawbacks that can not be overlooked. This essay will examine both the positive and negative aspects of this development.
On the one hand, the pre-eminent benefit if individuals do not pay tax, they can invest a lot of money. The rationale behind this is people are able to save all of their income whom they get. For instance, there are numerous citizen in Saudi Arabia who invest their money in expensive cars because they should not pay vehicle tax. Consequently, this lead to enhancing wealth people and reducing poverty, making it a favorable option for government policy.
On the one hand, notwithstanding the benefits mentioned above, there are certain disadvantage to consider, most notably in reducing public service. This is because the state revenue from tax is diminish, which is it used to finance public service. For instance, when individuals do not pay tax, the outcome is frequently they will find atrocious transportations, poorer infrastructures, underfunded schools and less efficient public safety. Thus, this development can be seen a double-edged sword.
In conclusion, while keeping money and tax write-off facilitate individuals to invests a lot, it is also associated with reducing public services. On balance, it is imperative that the people should pay tax to ensure that the long-term benefits outweigh the potential risk.