Tax for Development

TITLE: Tax for Development


YEAR: 2012

 It has been said that taxes are the price we pay for a civilised society. The private sector is important for investment, economic growth and development but cannot alone create a modern welfare state. Taxes paid by individuals and companies provide revenues to the state which can be used to finance public goods, such as health care, education, and infrastructure. In addition to generating revenues for the state, the tax system can contribute to more equality within a country. This can take place in two ways. Firstly, the tax system can be designed so that wealthy individuals with high incomes pay proportionally more taxes than others. Secondly, tax revenues can be spent on areas and measures that will particularly benefit low income groups.