Thursday 12 May 2016

Simple system may be hard to be cheated with

Tax is something necessary but unwelcome, especially to the wealthiest class. Tax is a tool to narrow the wealth class and fund the government budget. However, due to the systemic differentiation and complexity, tax becomes relatively more difficult to collect. The financial system is very complex and the multinational institutions use their tax strategies to minimize their tax paying. Moreover, different countries have different tax levels that why people have offshore accounts to avoid accounts. Therefore, in order to increase the tax incomes, it is extremely difficult to simplify the financial system, but it may be a good idea for governments to simplify their tax systems, as making tax policies more straight forward can make firms and individuals unable to take advantages of the complex tax systems.

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