Taxes in General

Taxes have been around for as long as you can imagine. It is always a way to create funding for the projects that are considered necesary for the over or general good of a society. But her are some of teh consequences of tax systems:

Since ,most opf teh taxes collectes ar spent for natioal defese in all countries, the goods and services produced with the tax dollsrs are not qvqilqble in the over all economy of og a country. But eh the funds ar paid out tothe contractors and others. This is extra money in some pockets but no the corresaponding goods and services to spend it on. Hence there is a constant pressure on the pries to rise. This is efectively a forced rationing syste. since some of the price rie has the effect of discouraging or reduceing the purchae from some sections of teh populaion. Hece we4 will lewaysnhave "poor", people, middle calss and the rich and many classses inbetween. This univesl trensd is wah twas the basis of teh collective ssytems as propounded by the Marx and others. that is a very big subject beyond the scioe of this little artical. We will simply conclude with the comment that this tax structure will aleays be asource of tension and struggle in a society. this is also evidenced by most countries in teh existence of leftist and righist parties of one color or another but the source of allthis tension is teh tax system. This struggle will continue for all times to come.

But ther are other consequecnes of the tax system which are not quite that serious but still lead to a a serious drag in the economy of all countries.

1.   No omne is happy paying the taxes. even the ones hired to fight tax evasion aree found using tactics to evade taxes almost everyday. Just about all upper circles in teh society will be found to be dabbling in some form of taxevssion. this leads to a huge tax court systems and an whole administration to fight tax evaion. this is another drag on teh economy. This setuop also leds to criminla systems for tax evasion and systems to fight the court case. this is an enormous drag on teh ssytem

2.   the tax ssytem also leads to a modiciction fo teh incentive system in teh economy and hence affects the groweth rate of an eceonomy. In particulsr if teh tax structure is too sever the incentive for any economic acticvitydisappers and hnece the growth rate will be small if not neglible. tis inturn affect sth saocial and cultural life of an economy and has serious long term consequences. It is no accident that the older econoly show a higher ost structure and lower growth rates.

3.   The item number 2 will have another consequence. Since the older econo,ies cannot maintain theri growth rates, teh bewer economis will hve serious strides vid- a- the older economies. thisiwll lesd to older econolis to control the progrwess of tehn ewer countires via legisl;ative methods such as nationlization and tarrigfs. It is no accidenta that Older ecomies have lost their technological edge but try to maintiaine through local and intrantionlegisdlation. You can see that in the fact aht almost all older economies have lost theri edge in all industries but try to maintain it via treaties and other restrictions on what the newer economies can do and produce. This inturn puts a pressure on the world political system and the political alignments in teh works and its attendent tensions and presuure on teh ivillin populations. this tension system will continue for all time to come.

4. ther is nothing an inviual can do about teh tax system and its attendednt consequences. It is best tht we look at our lives in all countries as a locakl affair and try to make the most of the situation locally and invidutall and in teh imediate future of ourselves and or families but be ready for the continuing tensions and the attndent soncsequences. 

RH