For a country to develop, there must be unity between the government and the citizens. Each must play their respective roles and responsibilities. When it comes to the growth and progress of the country, a country needs revenue. There are different ways in which a country generates resources including the importation and exportation of natural resources like oil, timber, and cotton. Another way a country generates income is through foreign aid and trade. Of all these methods, one that stands out is taxation. In so many countries, taxation is one of the ways a country generates revenue from citizens which is then used to carry out projects that benefit the citizens and the country as a whole.
The first time I heard of the concept of taxation was when I was in elementary school. My mom, a civil servant who works in a federal hospital, showed me her salary receipt and I saw that taxes had been deducted. It was written on the slip. Curiously, I asked her what it meant and she explained it to me. Back then, I thought of his much money my mom would get every month if taxes were not subtracted. Taxation may vary from country to country, but one thing countries have in common is that it is a universal headache. It can be frustrating when a certain amount gets deducted from your monthly income. I've had conversations with so many civil servants, and none of them have ever mentioned being happy about paying taxes. This doesn't mean they are not patriotic, however, the problem arises when their taxes are not being accounted for. Why would a person be happy paying taxes when they still battle with bad roads, lack of electricity, lack of good schools, lack of hospital equipment, and many other issues?
Just like in every other country, it is written in the constitution that it is the duty of citizens to pay taxes. For years, a continuous issue has sparked debate in many countries: should people who earn more money pay more taxes than those who don’t have as much? In a country, we have the poor and the rich people. Let's use Aliko Dangote, one of the richest people in Africa, as a case study. Dangote is a business mogul who earns a lot of money. He is a billionaire. Now, do you think it would be right if Aliko Dangote paid the same amount of tax as a teacher who earns thirty thousand naira per month?
This concept is fair on the surface level, but it is more complicated than it seems. I mean, we could argue that we all enjoy the same services, so why should one person pay more than another? If the rich pay more taxes than the poor, does this mean that they are entitled to more rights and services? We could also argue that the Constitution states that everyone is equal before the law, so why should things be different when it comes to paying taxes?
I was shocked when I learnt about the taxation system in Germany. On Discord, we had a conversation with Thatgermandude, a German on Hive and he told us about the taxation system in Germany. Germany operates a system where the rich pay more tax than the poor. On the surface level, this seems fair as it helps lessen the burden on poor people. However, it is far more complicated than that. In Germany, those who earn below a specific income are not to pay taxes. This is just so messed up as it increases the burden on rich people. It is as if the rich are getting punished for being rich.
To worsen the situation, the government pays unemployed people. For what? Doing nothing. I didn't know one could get paid for doing nothing. According to Thatgermandude, the money the government pays to the unemployed is more than what employed people earn. So, this just scatters everything. An employed person who earns little can just decide to quit and start earning more by doing nothing. People have taken advantage of this system and have become idle. Sleeping all day at home and still getting paid. The most intriguing part is that the money used to pay the unemployed people is generated by the taxpayers.
Summarily, the concept that rich people should pay higher taxes while poor people pay lower, is like a double-edged sword. It has its advantages and disadvantages. There are no logical reasons why rich people should pay higher taxes, however, countries should adopt whatever method works for them.
Thanks for reading.