In most countries, it is normal for individuals to pay a certain percentage of their income to the government in the form of income tax. Of course, few people actually like doing this, but most people, including myself, accept that it is necessary. Others say that it is not necessary at all and believe that people should keep all the money they earn.
If people didn’t pay income tax, the government would still have to get money from somewhere. In countries where people do not pay income tax, the government has other sources of income. For example, citizens of many oil-rich countries do not pay income tax because their governments raise revenue from the sale of oil. In countries where there is no such alternative, income tax would have to be replaced with taxes on consumption and with duties on imports and exports. This could place a disproportionate burden on businesses, rather than spreading the cost of government services between the business sector and individual citizens.
A few people claim that we could get rid of income tax by reducing the services that government provides. I really think that this would be a bad idea. The things that the government provides are usually very expensive, such as education, health, defence and infrastructure. If the government didn’t provide them efficiently. The difference between good and bad schools, already great, would become intolerable. The level of health care at certain poorly funded hospitals might become so low as to become a healthy risk to the rest of society. Defence is something that almost all economists accept it is impossible for private business to provide for an entire country.
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