it is accepted that liberalisation is the order of day including ex?

Question

socialist countries. in that case tax rates and tax laws should be drastically low and drastically simple.This is because capital formation is left to private sector ang government is a mere facilitator.Why then tax rates and administration are not
made light throughout world?why incur heavy expenditure in incime tax and ither tax administration?

Answer 1

Taxes have NOTHING to do with capital formation .

Taxes are for paying for medical care , schools , roads , fire and police department services (including prisons) , military and other social programs .

High tax rates are in countries that have high social expenditures . ( like Canada or Austrailia )
Low tax rates are in counties that have few social projects . ( like Mexico )

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