The transparent state makes people tax less, right?

The transparent state makes people tax less, right?

This question sounds controversial to many.

Because the experience of the people in many countries is

"Great state = more expensive taxes."

But when looking at international comparative data seriously,

The image appears much more complicated than that.

And in many cases, more transparent states create "worthwhile" and "lighter" tax burdens in the long run. [1]

Expensive or "wasted" taxes

Fiscal economists split the meaning of taxes into two dimensions [2].

1. Tax rate paid (Tax rate)

2. Effective Tax Burden

A highly corrupt country.

Even legal taxes are not high.

But people have to bear a lot of "latent taxes," such as

• Shortcut

• Special service charge

• Low quality of government services. Repeated from private

On the contrary.

Transparent states may tax at a higher-looking rate.

But people don't have to pay to buy what the state should provide.

Transparent State = More Value Use Money

Transparency makes every baht of the budget

Was used under the public eye [3].

• State projects reviewed

• Actual competitive procurement

• Systematic decrease in leakage

The result is

The state can provide public services of a higher quality.

Without the need to raise taxes proportionately.

The IMF study found that

Countries with high fiscal transparency

Can serve the state at the same level.

With a significantly smaller budget than high-core countries [4].

Foreign case study: Pay taxes and "get something back"

An example often quoted is Denmark.

Which has a relatively high income tax rate.

But the public has been

• Education

• Public health

• And basic welfare

Without paying more from their own pockets. [5]

On the other hand, Canada.

Emphasis was placed on the transparency of local budgets.

The public can verify that.

What are the taxes spent on in their area?

Make the tax resistance drop.

Even the tax rate is not the lowest. [6]

Taxes against the willingness of the people.

The key issue is not just "how much to pay."

But is the public feeling that the tax is worth it? [7]

Research in behavioral economics found that

People in countries where the state is transparent

Likely.

• Accepting more taxes

• Less tax evasion

• And support the state's long-term policies.

Transparency therefore reduces the cost of taxation.

Without increasing strict law enforcement.

When states are not transparent, taxes are "automatically more expensive."

In a deep-seated system.

States often have to raise taxes or borrow more money.

To compensate for the leak. [8]

The result is

• The poor bear more of the burden

• Increased disparity

• And mistrust of the state is even more intense.

This cycle makes the state even more lacking in legitimacy.

And rely on power rather than the consent of the people.

A tax in a democracy is a promise, not a compulsion.

In a strong democratic state.

Taxes are seen as a social contract. [9]

The people will pay.

Because

• Know that the state uses money transparently

• Eligible for inspection

• And political punishment can be imposed if the state fails.

So the real question is not

"Does the transparent state make it less taxing?."

But is

"How transparent a state keeps taxes from being wasted."

Transparent, not to reduce taxes, but to make taxes meaningful.

Transparency does not promise that taxes will always be low.

But it guarantees that

The tax will not be used without liability.