Tax Evasion


#1

Is there an easy way to reduce tax evasion? (Without cutting taxes of course)?

Should there be a tax enforcement agency? (Similar to the Welfare Fraud one?)


#2

Well, as long as taxes are relatively high, there should be tax evasion. But yeah, a tax enforcement agency could reduce (while not eliminating) the tax evasion.


#3

I agree that there should always be some, though I always find it hard to eliminate, or even affect. I can lower taxes quite substantially, but only get a small decrease in tax evasion.

Once people get into the habit of not paying taxes, they stay there. They won’t pay taxes just cause they’re lower. :imp: Annoying, but true.

So I was wondering if there could be a way to crack down on them…


#4

Didn’t someone on here do a modded policy for tax crackdown? have a look in the modding forum, I’m pretty sure someone added a policy (although its not in the auto-update yet).


#5

Actually, I don’t think Cliffski is right on this one. I don’t think there is such a policy now


#6

Damn I cant find it either. how strange. Well someone should make a tax evasion crackdown policy! maybe a slider can control whether you chase the poor people fiddling their tax or the wealthy, with a changeover in support depending who you go after?


#7

Thats a great idea cliff. Social security is abused heavily at times by the wealthy, politicians and above-average earning civil servants. You should see some of the severance packages that certain civil servants get here (ie. judges) and the pensions they receive from the government. It could be argued that if government subsidies (whether welfare to the poor, welfare to the rich or corporate welfare) were abolished entirely in the US, the country would have less poverty than how much there is now over there.

This is why I get tired about people (usually middle-class people which is a shame since they don’t know how much they are subsidizing big corporations) saying that the poor do nothing but leech off their tax dollars when really the upper middle-class/rich are just as, if not more guilty themselves in certain countries. Perhaps Scandinavia might give more to the poor (I assume) but its certaintly not like that in the US. Wal-Mart alone was given a few billion $US last year in the United States alone from local/state/federal gov’ts. I don’t get people who claim to be “free-market” capitalists but yet don’t speak a word about how big corporations are hindering free enterprise due to receiving subsidies. Adam Smith was adamantly opposed to corporate welfare.


#8

Not sure.
Tax evasion has a cost (you pay tax advisors and banks to optimize your situation). Tax avasion is often investing your money in another country to benefit from a lower tax policy. If the tax rate in your own country is lower, the benefit of investing you money elsewhere is less obvious.


#9

i managed to cut down tax evasion, you have to make a long term plan

gradually reduce your corporate tax until its low, and make some cutbacks on income tax aswell
beef your sales tax to cover it, you may also need to adjust some of what you are paying out, military spending is a good place.

All in all it takes 4-8 terms office for me usually

its worth doing, have a look at your expenditure and you will se just how much you are losing to tax evasion, its quite high, when you finaly beat it your expenditure drops loads.

Definitely a good long term goal


#10

Then if cutting corporate and income tax reduces tax evasion, logically increasing sales tax should cause the formation of a shadow economy–the well known “black market,” in turn causing a drain on the real economy, and GNP.


#11

perhaps in the real world, but this hasnt hapened to me in democracy, only greater revenue


#12

There is a black market situation, you might not have triggered it yet.


#13

oh right, guess im lucky then