{"id":266102,"date":"2012-08-01T12:03:18","date_gmt":"2012-08-01T12:03:18","guid":{"rendered":"http:\/\/new.moldova.org\/2012\/08\/01\/preparing-for-the-taxpayer-hunt-232141-eng\/"},"modified":"2012-08-01T12:03:18","modified_gmt":"2012-08-01T12:03:18","slug":"preparing-for-the-taxpayer-hunt-232141-eng","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/preparing-for-the-taxpayer-hunt-232141-eng\/","title":{"rendered":"Preparing for the taxpayer hunt"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

After having replaced the Ministers of Education and Internal Affairs, Prime Minister
\nVlad Filat announced he would personally inspect the Ministry of Finance during the
\nfollowing week, after having expressed dissatisfaction with fiscal discipline in Moldova.
\nHe stated: "We need a larger plan for informing people about how this principle of
\nindirect taxation will be managed. People need to understand that taxes must be paid.
\nTax is not a fad, is an obligation arising from legal provision. "<\/p>\n

A famous Lenin quote goes at follows: “The way to crush the bourgeoisie is to grind
\nthem between the millstones of taxation and inflation.” Observing the increasingly
\nbad shape the middle class is in, both in the “West” and in the Republic of Moldova,
\nit seems Lenin’s advice is being “implemented” with gusto. When officials speak of
\nEuropean standards, what is understood implicitly is a higher regulatory burden and
\ntax “harmonization” between countries (almost always upwards), while in the current
\ndebt crises, a currency collapse through hyperinflation is looming on the horizon for
\nmost global currencies, including the Eurozone. When citizens in Moldova think of
\nEuropean standards they have in mind European traditions like the Rule of Law and
\nfree market capitalism which produced an enormous wealth increase, especially in the
\nmuch more liberal 19th century.<\/p>\n

Taxes are involuntary contributions which do not add to society’s wealth but divert it. In
\nvoluntary (market) transactions both sides in an exchange profit, at least, they expect to
\ndo so beforehand. Otherwise, the transaction would not take place. Thus, a society of
\nvoluntary exchanges is inherently wealth-generating. Involuntary exchanges, like theft
\nor taxes benefit only one side of the interaction, in the latter case, the tax-consumers.
\nApart from the ethical aspects, it is also economically catastrophic, because taxes are
\nused to fund monopolistic state-produced goods and services. Therefore, increasing
\ntaxes is a cornerstone of socialistic party programs.<\/p>\n

While on the one hand, the Moldovan Parliament passed legislation concerning the
\nprohibition of Soviet symbols, one may suspect that anti-communism is directed only
\nto the symptoms but not the causes of Communist crimes. A reliable indicator is the
\nuse of the word Communism instead of socialism. Trying to separate the two, opinion-
\nmakers often want to obscure the inherent totalitarian nature of socialism. Thus, two
\narguments are commonly made to defend the proposed benefits of a socialistic system.
\nSocialism „with a human face” is possible, „if only the right persons where chosen to
\nplan society”; it is possible to have „human rights” like freedom of expression while
\nrenouncing „only” some economic rights. These are two tragic illusions which have been
\nthe basis for most past communist dictatorships.<\/p>\n

What are the implications for Moldova? Many Moldovans remind foreigners that their
\ncountry is currently the poorest country in Europe. While poverty is a relative concept,
\ndepending on subjective values judgments, even following „objective” economic
\nindicators, this should be a motive to drastically reduce taxes. Contrary to some
\nopinions, taxes do not increase wealth but act as a penalty for the productive sector.
\nSmall and medium enterprises are especially hard hit, whereas bigger companies can
\nput up more easily with the increasing bureaucratic burden, including employing tax<\/p>\n

lawyers.<\/p>\n

If current „European standards” in taxation and regulation were introduced and strictly
\nimplemented in countries like Bangladesh or Ethiopia, their population would be even
\nin a worse shape. In history, no country has developed thanks to high taxes, whereas
\nEurope has been developing the last hundred years or so, in spite (!) of higher taxes
\nand regulations. However, fundamental economic laws are increasingly bringing it back
\nto reality, which is, pushing us further into a recession.<\/p>\n

Maybe it would be a wiser move to learn, not from failing economies, but from the so-
\ncalled tax paradises in history and present. <\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>After having replaced the Ministers of Education and Internal Affairs, Prime Minister Vlad Filat announced he would personally inspect the Ministry of Finance during the following week, after having expressed dissatisfaction with fiscal discipline in Moldova. He stated: We need a larger plan for informing people about how this principle of indirect taxation will be managed. People need to understand that taxes must be paid. Tax is not a fad, is an obligation arising from legal provision.<\/p>\n","protected":false},"author":3,"featured_media":266101,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-266102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"content_social_share":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

After having replaced the Ministers of Education and Internal Affairs, Prime Minister
\nVlad Filat announced he would personally inspect the Ministry of Finance during the
\nfollowing week, after having expressed dissatisfaction with fiscal discipline in Moldova.
\nHe stated: "We need a larger plan for informing people about how this principle of
\nindirect taxation will be managed. People need to understand that taxes must be paid.
\nTax is not a fad, is an obligation arising from legal provision. "<\/p>\n

A famous Lenin quote goes at follows: “The way to crush the bourgeoisie is to grind
\nthem between the millstones of taxation and inflation.” Observing the increasingly
\nbad shape the middle class is in, both in the “West” and in the Republic of Moldova,
\nit seems Lenin’s advice is being “implemented” with gusto. When officials speak of
\nEuropean standards, what is understood implicitly is a higher regulatory burden and
\ntax “harmonization” between countries (almost always upwards), while in the current
\ndebt crises, a currency collapse through hyperinflation is looming on the horizon for
\nmost global currencies, including the Eurozone. When citizens in Moldova think of
\nEuropean standards they have in mind European traditions like the Rule of Law and
\nfree market capitalism which produced an enormous wealth increase, especially in the
\nmuch more liberal 19th century.<\/p>\n

Taxes are involuntary contributions which do not add to society’s wealth but divert it. In
\nvoluntary (market) transactions both sides in an exchange profit, at least, they expect to
\ndo so beforehand. Otherwise, the transaction would not take place. Thus, a society of
\nvoluntary exchanges is inherently wealth-generating. Involuntary exchanges, like theft
\nor taxes benefit only one side of the interaction, in the latter case, the tax-consumers.
\nApart from the ethical aspects, it is also economically catastrophic, because taxes are
\nused to fund monopolistic state-produced goods and services. Therefore, increasing
\ntaxes is a cornerstone of socialistic party programs.<\/p>\n

While on the one hand, the Moldovan Parliament passed legislation concerning the
\nprohibition of Soviet symbols, one may suspect that anti-communism is directed only
\nto the symptoms but not the causes of Communist crimes. A reliable indicator is the
\nuse of the word Communism instead of socialism. Trying to separate the two, opinion-
\nmakers often want to obscure the inherent totalitarian nature of socialism. Thus, two
\narguments are commonly made to defend the proposed benefits of a socialistic system.
\nSocialism „with a human face” is possible, „if only the right persons where chosen to
\nplan society”; it is possible to have „human rights” like freedom of expression while
\nrenouncing „only” some economic rights. These are two tragic illusions which have been
\nthe basis for most past communist dictatorships.<\/p>\n

What are the implications for Moldova? Many Moldovans remind foreigners that their
\ncountry is currently the poorest country in Europe. While poverty is a relative concept,
\ndepending on subjective values judgments, even following „objective” economic
\nindicators, this should be a motive to drastically reduce taxes. Contrary to some
\nopinions, taxes do not increase wealth but act as a penalty for the productive sector.
\nSmall and medium enterprises are especially hard hit, whereas bigger companies can
\nput up more easily with the increasing bureaucratic burden, including employing tax<\/p>\n

lawyers.<\/p>\n

If current „European standards” in taxation and regulation were introduced and strictly
\nimplemented in countries like Bangladesh or Ethiopia, their population would be even
\nin a worse shape. In history, no country has developed thanks to high taxes, whereas
\nEurope has been developing the last hundred years or so, in spite (!) of higher taxes
\nand regulations. However, fundamental economic laws are increasingly bringing it back
\nto reality, which is, pushing us further into a recession.<\/p>\n

Maybe it would be a wiser move to learn, not from failing economies, but from the so-
\ncalled tax paradises in history and present. <\/p>\n

<\/div>
<\/div>
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