To start off I’ll make it very clear, this blog will not be political in nature. Tax avoidance occurs everywhere, and it needs to stop. Locally, people don’t seem to give a hoot about tax avoidance. Government and opposition supporters use the term to throw insults at each other. This is of course greatly irresponsible, since these people do not appreciate the consequences of tax avoidance.
So why should we care so much about tax avoidance you ask? Here it goes.
When citizens avoid tax, the country loses money. Global estimates of money lost to tax avoidance vary from below and above $20 trillion. What could be done with that money?
The first thing that comes to mind is more investment in medical research. In most cases research on diseases is greatly underfunded. Part of the reasons medical research is underfunded comes from tax evasion. Who knows how many diseases could have been cured? Who knows how many lives would have been saved if people didn’t avoid paying their tax.
The same thing applies to medical care. Maybe our hospitals wouldn’t be overcrowded if we had more money in the pot.
And what about education? How much more could we invest to improve our educational system? Goodness me, maybe we wouldn’t have all those children making it out of school without any qualifications.
Finally we must also look at the most vulnerable people, such as those experiencing poverty. If people paid their tax we could invest more and help provide people experiencing poverty a better chance in life.
Granted, money is not the only problem, and these problems cannot be solved only by throwing money at them. However I’m 100% certain that more money in the pot would at the very least help.
I’d like to conclude by stating that we need to curb tax evasion and take it more seriously. People who avoid and people who help other avoid paying tax are leeches who need to be punished.
Marc’ Andrea Cassar