Taxes
Governments rely on taxes to carry out programs designed to help their citizens. It is the business sector that provides the bulk of these tax revenues. Business taxes and withholding tax from their employees form a government’s major revenue sources but tax regulations should be simple to administer and implement. Tax loopholes should be plugged since a big portion of tax revenues are lost through them. Experts in taxation often point out the experiences of some countries where fewer tax laws resulted in higher revenue collections because people are encouraged to pay the correct taxes. Likewise, penalties for tax evasion should be high enough to compel people to comply with tax laws.
Tax distribution wheel