Why do we pay taxes?

[Peter90]

What I got is that he's implying that it's not needed because they keep on printing money to fund to so called infrastructures and other Government services.

President Nayib is right. Taxation was invented when some form of gold standard existed, before national currencies could be produced at will by Govs and Central Banks.
The only way for the gov to finance their expenses was to get money from their citizens - or from abroad, through international agreements, international trade, war, colonialism etc...

With the abolition of the gold standard and the introduction of fiat currencies produced at will, taxation becomes unnecessary.

We can discuss whether it is better with taxation or without taxation.
I'm not saying that taxation is bad. Maybe it is better to keep it.
I'm just saying it isn't necessary - within a fiat currencies system.

Pres. Nayib is 100%

[0t3p0t]

You're familiar with the buy back and burn program of various crypto projects right? It's almost the same with the Government issuing newly printed fiats, then collecting them back through taxes. The process is controlling the fiat in circulation, thereby controlling inflation.

Yeah that is exactly what it's all about controlling inflation. The only problem in collecting taxes is that it sometimes landed in someone's purses not in the exact place where it should be. But if taxes really was collected, stored and used in a lawful way it will bring better result on the economic growth of a specific country.

[Agbe]

Admin first of all let me thank you for designing the forum to play video. Though I didn't finished watching the video but I like the speech of El Salvador President. And concerning the Tax. Paying tax is very good and if only the government of the country utilize it well for the purpose of the tax collecting from the people. And tax is collected for the development of the society, community and the Nation. Most people are not paying tax because the government agencies are not doing their jobs well. And instead they are corrupted. So they are also defaulters of the crime of not paying tax. We pay tax for the development of the nation for the government to provide the social amenities like, electricity, water, security, etc.

[DrBeer]

You're familiar with the buy back and burn program of various crypto projects right? It's almost the same with the Government issuing newly printed fiats, then collecting them back through taxes. The process is controlling the fiat in circulation, thereby controlling inflation.

Yeah that is exactly what it's all about controlling inflation. The only problem in collecting taxes is that it sometimes landed in someone's purses not in the exact place where it should be. But if taxes really was collected, stored and used in a lawful way it will bring better result on the economic growth of a specific country.

It is also worth adding about taxes, in addition to their proper use, it is necessary to create a favorable environment in the economy for the development of private business, which in turn creates new businesses, new jobs, and as a result - new tax revenues. Without private business, the economy becomes very "sluggish" and inefficient, which in the end also negatively affects tax revenues. This is due to the low efficiency of companies that are run by the state and its management.

[Stompix]

Has anyone realized that Salvador can't print money?
They use the USD, they can't print money out of thin air so, how does that work in their case? 

Anyhow, if a country like the ones in Europe would resolve to printing money instead of collecting taxed they would need to add each year around 40-50% of their GDP in monetary mass, imagine Europe printing 10 trillions euros each year and giving it basically away, how do you think inflation would look like? Just one year healthcare and education spending in the EU is 20% of the total M1 supply.

[yohananaomi]

Yeah that is exactly what it's all about controlling inflation. The only problem in collecting taxes is that it sometimes landed in someone's purses not in the exact place where it should be. But if taxes really was collected, stored and used in a lawful way it will bring better result on the economic growth of a specific country.

It often happens that those who know the rules regarding taxation will always do as you say. That is no longer an open secret. Lining personal pockets from results that should not be with, so that the benefits that should be used from taxes taken cannot be fully absorbed and returned for the benefit of society, to improve economic growth. It is difficult to improve this kind of mentality if the rules made are not strict and government officials do not punish them firmly to provide a deterrent effect so that it will not happen again and again.

[electronicash]

Yeah that is exactly what it's all about controlling inflation. The only problem in collecting taxes is that it sometimes landed in someone's purses not in the exact place where it should be. But if taxes really was collected, stored and used in a lawful way it will bring better result on the economic growth of a specific country.

It often happens that those who know the rules regarding taxation will always do as you say. That is no longer an open secret. Lining personal pockets from results that should not be with, so that the benefits that should be used from taxes taken cannot be fully absorbed and returned for the benefit of society, to improve economic growth. It is difficult to improve this kind of mentality if the rules made are not strict and government officials do not punish them firmly to provide a deterrent effect so that it will not happen again and again.

hanging a corrupt politician right on the town square in front of the many people will be a good example for all politician in a country. this will make them afraid of spending the money that is not theirs.

putting them in prison will only make worse since people will still be paying taxes to feed this politician in the prison. they should be hang but the justice system in the country is just to coward in doing all these.

[yohananaomi]

Yeah that is exactly what it's all about controlling inflation. The only problem in collecting taxes is that it sometimes landed in someone's purses not in the exact place where it should be. But if taxes really was collected, stored and used in a lawful way it will bring better result on the economic growth of a specific country.

It often happens that those who know the rules regarding taxation will always do as you say. That is no longer an open secret. Lining personal pockets from results that should not be with, so that the benefits that should be used from taxes taken cannot be fully absorbed and returned for the benefit of society, to improve economic growth. It is difficult to improve this kind of mentality if the rules made are not strict and government officials do not punish them firmly to provide a deterrent effect so that it will not happen again and again.

hanging a corrupt politician right on the town square in front of the many people will be a good example for all politician in a country. this will make them afraid of spending the money that is not theirs.

putting them in prison will only make worse since people will still be paying taxes to feed this politician in the prison. they should be hang but the justice system in the country is just to coward in doing all these.

Sometimes, for a deterrent effect, we have to, as you say, take responsibility for everything in public, especially to the public. The most important thing is that their assets are confiscated and their rights to be free in politics, speak in public, and obtain easy facilities are no longer applied to them. Imprisoning them is not a solution if they still have access and assets. Everything should have been confiscated by the state so that they don't have the ability to manage everything anymore, especially if they are imprisoned, they will manage with the abilities they still have because they haven't been confiscated and limited.
Maybe if you hang, it will still involve human rights violations, but impoverishment is certainly the most effective, so that they can no longer manage with the money they have.

[Altcoin1998$]

That was funny but it still makes sense. Basically, the message was that the Government take back the money they printed through citizen taxes in order to keep the value of the currency up. It's use to keep fooling the citizens that inflation is under control. The cycle of collecting high taxes also allows the Government to keep printing fiats and fund military expansions in other countries.

There are many other important reasons for the collection of taxes by the government, among which you have mentioned that the most amount of money is spent in the military sector. It is never possible for the government to carry that money alone. Therefore, it pays for the country's education and military sectors by collecting taxes from the public. Moreover, there are hundreds of other important reasons through which the government is forced to collect taxes. MoreoverIf the tax is not collected, the rate of inflation in the country will increase to a great extent and the country incurs a lot of expenses for running the country and dealing with the outside world.

[Emmanuel1]

The reason why we pay tax to the government is for the betterment of the country because tax is used,  for infrastructures, it is used to fund education, it is used to pay salaries  of workers and pensions  of retiree's . It is very important that all citizens of the Nation are taxpayer, so that the money can be used for the betterment and improvement of the country.

[DrBeer]

What I got is that he's implying that it's not needed because they keep on printing money to fund to so called infrastructures and other Government services.

President Nayib is right. Taxation was invented when some form of gold standard existed, before national currencies could be produced at will by Govs and Central Banks.
The only way for the gov to finance their expenses was to get money from their citizens - or from abroad, through international agreements, international trade, war, colonialism etc...

With the abolition of the gold standard and the introduction of fiat currencies produced at will, taxation becomes unnecessary.

We can discuss whether it is better with taxation or without taxation.
I'm not saying that taxation is bad. Maybe it is better to keep it.
I'm just saying it isn't necessary - within a fiat currencies system.

Pres. Nayib is 100%

And in this case, I'm willing to argue with you
Taxes are not some ethereal entity. It is money paid by the citizens of a country for the state to exist. The state has no other money than public sector revenues, and taxes. But the public sector is not the biggest part of the budget revenue. If people and businesses don't pay taxes - where will the state get the money to pay for pensions, benefits, compensation for medical care, education,... ? ? There are 2 options here:
Either the state provides nothing to citizens, at the expense of "state business" providing the work of the state itself, or it starts printing money. Both options you will obviously not like, as well as I do

[0t3p0t]

You're familiar with the buy back and burn program of various crypto projects right? It's almost the same with the Government issuing newly printed fiats, then collecting them back through taxes. The process is controlling the fiat in circulation, thereby controlling inflation.

Yeah that is exactly what it's all about controlling inflation. The only problem in collecting taxes is that it sometimes landed in someone's purses not in the exact place where it should be. But if taxes really was collected, stored and used in a lawful way it will bring better result on the economic growth of a specific country.

It is also worth adding about taxes, in addition to their proper use, it is necessary to create a favorable environment in the economy for the development of private business, which in turn creates new businesses, new jobs, and as a result - new tax revenues. Without private business, the economy becomes very "sluggish" and inefficient, which in the end also negatively affects tax revenues. This is due to the low efficiency of companies that are run by the state and its management.

Exactly, because that is where local and international business investors are up to since they don't bother pouring their capital into an economy that is unstable unless they are willing to take the risk. Taxes really has a lot of advantages and few disadvantages. For advantages it bring the economy up but for disadvantages it becomes a cash cow for corrupt politicians. That is why I can see some substandard projects here in my country and funny thing about it is that even if roads are still in good condition, they will intentionally destroy and reconstruct it so they can get portion of the budget which is pretty obvious in the eyes of the masses. I wish this kind of wrong doings will come to an end soon.

[Stompix]

hanging a corrupt politician right on the town square in front of the many people will be a good example for all politician in a country. this will make them afraid of spending the money that is not theirs.

All governments and especially dictatorships that have turned to this to make it look like they are protecting the average citizen and care about the country have ended up killing more innocents than any other regime, even if those were corrupt to the bone.
All of human history is filled with those who strat as freedom or equality fighters and ended up as genocidal dictators, Mao did this anti-corruption thing with the Three-anti Campaign,  and Five-anti Campaign hundreds of thousands died and corruption became even more engraved in the country.

[DrBeer]

You're familiar with the buy back and burn program of various crypto projects right? It's almost the same with the Government issuing newly printed fiats, then collecting them back through taxes. The process is controlling the fiat in circulation, thereby controlling inflation.

Yeah that is exactly what it's all about controlling inflation. The only problem in collecting taxes is that it sometimes landed in someone's purses not in the exact place where it should be. But if taxes really was collected, stored and used in a lawful way it will bring better result on the economic growth of a specific country.

It is also worth adding about taxes, in addition to their proper use, it is necessary to create a favorable environment in the economy for the development of private business, which in turn creates new businesses, new jobs, and as a result - new tax revenues. Without private business, the economy becomes very "sluggish" and inefficient, which in the end also negatively affects tax revenues. This is due to the low efficiency of companies that are run by the state and its management.

Exactly, because that is where local and international business investors are up to since they don't bother pouring their capital into an economy that is unstable unless they are willing to take the risk. Taxes really has a lot of advantages and few disadvantages. For advantages it bring the economy up but for disadvantages it becomes a cash cow for corrupt politicians. That is why I can see some substandard projects here in my country and funny thing about it is that even if roads are still in good condition, they will intentionally destroy and reconstruct it so they can get portion of the budget which is pretty obvious in the eyes of the masses. I wish this kind of wrong doings will come to an end soon.

You make all the right points. And most importantly, you have voiced the key problem - it is CORRUPTION. You can attract investors, you can create good legislation, you can make even low taxes - but until the impact of corruption in the country is destroyed or minimized, it will all be ineffective. Unfortunately, corruption is a very serious, "chronic" disease of the state. And corruption, as an insidious disease, makes the "whole organism", i.e. all other citizens of the country to work very hard, after which corruption steals the fruits of the work of all people without any problems.

[Dr.Bitcoin_Strange]

Some believe that the social portable is unfair since not everyone receives equal advantages from the government's services. For example, some people may live in rural locations with few public amenities or they may not use roads or schools as frequently as others. On the other hand, some say that even if you do not use government services, you profit by living in an atmosphere that provides them. Even if you don't drive on the road, you benefit from the fact that others can commute to work and provide goods and services to you.  So we all agree to pay taxes to fund services provided to the public, and as a return, we get the benefit of all of these advantages.