Taxation

There are some who scorn at paying taxes, often arguing that they do not receive any benefits from doing so. Make them a proposition: they may stop paying taxes of every kind and instead pay for the public services individually every time they use them. Let them pay every time they use the road, park their vehicles, visit a public park, use a railway station or bus terminal. Chances are that they will not take this offer because it is far economical to pay taxes than pay for these services when incurred. The fact is, everyone is a beneficiary of paid taxes because at some point they have used a public service or enjoyed the freebies politicians so love to offer. Therefore, everyone is liable to pay tax.

But a better way to look at taxes is not as a payment for something in return, but as a form of contribution towards nation building where you may not necessarily get anything directly in return. It is for this reason, the general proposition of abolishing taxes altogether is not acceptable. What we need instead is a fair tax regime.

A fair tax regime does not have irrationally high tax rates. Consider income tax payment from the perspective of time: out of the 12 months in a financial year, it is not acceptable to ask an individual or a company to work freely in the interest of all for more than a month. Therefore, a reasonable income tax rate is one month's income in a fiscal year, which is 8.33%. If the tax income from 8.33% is not sufficient for the state, it must find alternate revenues instead of using the "need" argument to charge more. Fairness should be the criteria to charge more or less; not need.

A fair tax regime does not spend tax income on vanity projects, undeserving citizens, vote banks politics, appeasement policies, bailing out corporations off their stupid decisions, educating students who either do not contribute back to the nation or pursue another career wasting their tax paid education.

A fair tax regime does not force you to pay for other's choices. For instance, why should a person following an organic lifestyle pay for the recycling cost of inorganic wastes generated by others? The use of plastics are largely because of convenience. So, why should others pay for such lifestyles? The tenet on waste goes thus: whoever end generates the waste must be responsible for its proper disposal and its cost.

A fair tax regime does not tax the wealthy more or have the reasoning that fair share of taxes means paying more percentage of the income as tax. This thinking infers that becoming wealthy is some form of an unfair act and now the wealthy have to atone for this unfair act by paying more tax. Well, if becoming wealthy is unfair, it must be unjust too. Therefore, if such souls really want to make it fair, make it a crime to become wealthy.

If there is equal opportunity for all, taxing anyone more is unjust. In the case of taxing the wealthy a higher percentage, it equals to punishing them for taking the risks, competing and becoming wealthy. A fair tax slab is where every person is taxed the same percentage of their income since equal opportunity has levelled the game of money. If some sections do not have the resources to compete, allocate the resources equitably.

Some justify the unequal tax slab as a way to punish the wealthy who amassed their wealth unethically. If that be so, this also punishes those wealthy individuals who amassed their wealth ethically. Justice cannot be served by making the innocent a collateral while punishing the guilty.

Others have argued that it will be unfair to tax those citizens earning meagre incomes. If so, then have an income bracket that is exempted from paying tax, and have another bracket that is liable to pay tax — and tax them the same rate.