TAX: The good & The ugly

Taxes can be both good and bad for a country, depending on how they are structured and used. Let me break it down:

⁕ Good for a country:

1. Public Services

2. Redistribution of Wealth

3. Economic Stability

4. Long-term Development

⁕ Bad for a country:

1. Tax Burden

2. Inefficiency

3. Compliance Burden

This are some basic which everybody might know but beyond how tax effects the economy. Social programs what you referred to as "freebies" can provide immediate relief and improve quality of life for the population. But on the other hand, without strong infrastructure, long-term economic growth can be limited. Countries like Pakistan, Venezuela, Sri Lanka have only focused upon freebies rather than investing in infrastructure for growth, So now there economy is struggling.

Many intellectuals compare developing nations with the Nordic and highly developed nations but ignores that their safety security is cared by US & France and they have already built infrastructure when developing was under occupation. Many nation till now have not come out of colonial loot. Best example is China which faced civil war Japanese atrocities in WW-II but today one of the upcoming developed nation list. Only because of invested in infrastructure first now providing various facilities for their citizen. It is hierarchy which followed by every countries which is developed now. It will impact middle class working class but in long term they will be benefited. Many argues don't invest in R&D, defense and borrow loans. But it's not easy for every country, Israel is enjoying in middle east being a Jewish state because of defense (Mossad intelligence, Iron Dome, Drones and many US and European weapons) R&D also help to feed citizen in desert. Japan case is different they got security by US since WW-II but took heavy loans for infrastructure to avoid tax burden on citizen but today GDP of Japan is $4.3 trillion but loan is 260% higher than GDP counts in country with depressed population. Pakistan who only invested in defense and took a lots of loan by fooling their citizens that bring them to bankruptcy it should have certain limits in budget.

Even government can invest by taking money from citizen by saying you invest now you will get better returns after 20 to 25 years(long term investment) or when you will get old this will help government to relief citizen from taxes and can resolve infrastructure issues. Should make laws on infrastructure so no government after losing election can interrupt infra-development as new government holds the power "specially for democratic developing nations" which will not increase price of project. Participate most of the citizen in tax paying like in India there is around 4% population who pays income tax that put burden on citizen from tax.

"If the country work hard today citizen will get better future, But will work on freebies citizen will pay economic consequences". Their are many more examples but remember invest in country correctly it will give good life but in only non performing asserts country might collapse example is Soviet Union a superpower once.