2016-08-24 00:57:20
The tax disparity between the rich and the poor- can the nation function?
The tax disparity between the rich and the poor- can the nation function?
Estimated time to read the article : 2 min, 4 secs
One of the building blocks of developed nations is the fully rounded tax systems and tax laws in those countries.
In the Maldives no taxes are taken from the rich, creating a large disparity between the rich and the needy.
Many needy people have to resort to taking out loans for basic medical expenses, including flying abroad for medical checkups, mostly on an annual basis.
They have to resort to buying things from the local businesses, splurging on the various taxes including GST. Those who are able to fly abroad on a weekly basis can afford to shop without paying the multitude of taxes to the Government.
Those who argue against taxing the rich, say that they can move ahead without paying taxes as they spend a significant amount on individual citizens. If this is the case, then probably there is no issue.
However, in reality there are not many who spend on individual citizens.
The brunt of the taxation system currently falls on the average citizen; a system that is not used in any other country. GST accounts for the biggest revenue generator for the state. GST is taxed on all without any exemption but the rich are exempted because they do not buy locally.
Researchers say that if the principles are changed in favor of a stronger tax system then the debt situation of the country will be resolved.
In the Maldives no taxes are taken from the rich, creating a large disparity between the rich and the needy.
Many needy people have to resort to taking out loans for basic medical expenses, including flying abroad for medical checkups, mostly on an annual basis.
They have to resort to buying things from the local businesses, splurging on the various taxes including GST. Those who are able to fly abroad on a weekly basis can afford to shop without paying the multitude of taxes to the Government.
Those who argue against taxing the rich, say that they can move ahead without paying taxes as they spend a significant amount on individual citizens. If this is the case, then probably there is no issue.
However, in reality there are not many who spend on individual citizens.
The brunt of the taxation system currently falls on the average citizen; a system that is not used in any other country. GST accounts for the biggest revenue generator for the state. GST is taxed on all without any exemption but the rich are exempted because they do not buy locally.
Researchers say that if the principles are changed in favor of a stronger tax system then the debt situation of the country will be resolved.