Why I wouldn’t pay taxes
I wouldn’t pay my taxes if I did not have a reasonably secure job/career. Even if I was earning millions today but was reasonably sure that I wouldn’t be earning this much orr nothing at all soon.
I think one of the reasons why a lot of people in India do not pay taxes might be this. I expect quite a few shops in India to be earning a lot of money. But then you never know what’ll happen in a few years. The government might break down their shops to make roads. The locality might become less popular for residents. The residents in the locality might become old and younger people might not move in. Old people are not known to spend lots of money usually… and I am sure there will be a huge list of these.
I pay my taxes because I don’t have an option to evade. My company deducts my taxes before I get to see the other half 😦
So among the ways to encourage tax-compliance, one is to enforce it somehow (which gives short-term results, but how long can you do it in a country where the “organized” sector is a tiny bit) and another is to improve job quality and security.
There must be others, but this is what hit me just now. BAM… just like that 🙂 Now I’ll ruminate on it and evaluate how much truth is in it.