SE: Taxation Sword and Economic Suicide

Taxation alongside Public Private Partnerships, Public Investments, Public support for Private Business Ideas(YOUWIN) are ways to build a region's IGR ( Internal Generated Revenue ).

Taxation is a double edge sword which can be deadly to an economy if not wisely applied.

There Are 3 Ways To Build The IGR of A State Through Taxation:

1) Capturing more people into the tax bracket

2) Increasing tax rates

3) Creating platforms to help the Citizens increase their income while keeping the interest rates constant.


History has shown us that capturing more people into the tax bracket only works when the people are financially buoyant.

History has shown us that increasing tax rates have ended up destroying not only the economy but led to several uprisings that toppled regimes.


The 3rd pathway has always being the path chosen by wise leaders and appreciated by the citizens.

EXAMPLE

Imagine Ebonyi State governor, creating a platform whereby a yam farmer who used to pay a tax of #100,000 at 10% on 1,000,000 naira he generates yearly, now generates 2,000,000 naira yearly by selling his yam to industries or foreign markets the State Governor was able connect him to.

That farmer will end up paying #200,000 at the same rate of 10%.

In the end, he pays more in tax at a constant rate of 10%.



South East Governors should be careful not to follow the dangerous path taken by some Governors in the South who keep increasing their IGR without first and foremost, creating platforms that can help their people make more money so that they can pay more tax at constant rate.


In few years to come, when oil wealth will diminish, those states who have succeeded in creating so many platforms to help their people make money through local & foreign industries or markets, will be the ones escaping the impending poverty due to decline in oil dollars.


Finally, we need to start asking our docile and treacherous Governors how many platforms have they created to help our people's pockets increase.


Let's start asking them especially those who seek to be re- elected or elected into power.

Very good write up, northern states Re all pAssures all d same

Isoko1stSon:
Very good write up, northern states Re all pAssures all d same

The first thing a Governor should be asked, is how he intends to increase the money in people's pockets.


In the end, what matters is not how much a state generates but how much her indigenes got in their private pockets.


DrGoodMan

Rmxr

Blue3k

firefire

Ipoblogic

EternalTruths:



The first thing a Governor should be asked, is how he intends to increase the money in people's pockets.


In the end, what matters is not how much a state generates but how much her indigenes got in their private pockets.


DrGoodMan

Rmxr

Blue3k

firefire

Ipoblogic

The fact you think these concepts are mutually exclusive shows you're missing forest for trees. It's sad but eventually you'll figure it out.

uncertainty is the watch word

OP by paying the 200,000 has he not made enough money.... because the government gave him the market to sell his goods unlike those that had no market to sell theirs.

the best is to cut taxes and avoid spending money on white elephant project.

If money derived from tax is spent on infrastructure the economy will boom. Building infrastructure is a way of indirectly adding to the pocket of the masses. In Igboland we can use taxation to rebuild and place our economy above the level that depends solely on monthly allowance from the federal government.

MyNewJackeT:
OP by paying the 200,000 has he not made enough money.... because the government gave him the market to sell his goods unlike those that had no market to sell theirs.

the best is to cut taxes and avoid spending money on white elephant project.

God bless you.


I laugh at people who keep hammering so much on Taxation.

I have never seen a country that grows well through taxation.

Government should focus more on creating platforms that can help the people generate more money to sustain themselves.


Jomonic, when a Governor helps his people to make more money and encourage them to work on community infrastructures like schools, roads, hospitals, water systems etc, the burden on State resources will decline.


Jomonic, ask yourself why Igbos are not happy with the present set of governors unlike late Mbakwe tenure as the governor of old Imo State.



Blue3k, I wish you can get closer to those in power in order to see why they ended up as failures.


Ask yourself why it seems that prosperity existed during Jonathan's era and why it seems to have vanished under Buhari.


Jonathan worked on policies that increased money in people's pockets eg Increase in allowances, YOUWIN, more electricity, more foreign markets etc.

Buhari did exactly the opposite and the lives of the people crumbled.

To be frank with you Blue3k, if given any of the states in the East to manage for uninterrupted 8 years, you will end up as a disaster because of your lack of understanding about focusing more on Citizens Income Sources rather than IGR.


First work on the Citizens Income Sources and not State IGR.

EternalTruths:



God bless you.


I laugh at people who keep hammering so much on Taxation.

I have never seen a country that grows well through taxation.

Government should focus more on creating platforms that can help the people generate more money to sustain themselves.


Jomonic, when a Governor helps his people to make more money and encourage them to work on community infrastructures like schools, roads, hospitals, water systems etc, the burden on State resources will decline.


Jomonic, ask yourself why Igbos are not happy with the present set of governors unlike late Mbakwe tenure as the governor of old Imo State.



Blue3k, I wish you can get closer to those in power in order to see why they ended up as failures.


Ask yourself why it seems that prosperity existed during Jonathan's era and why it seems to have vanished under Buhari.


Jonathan worked on policies that increased money in people's pockets eg Increase in allowances, YOUWIN, more electricity, more foreign markets etc.

Buhari did exactly the opposite and the lives of the people crumbled.

To be frank with you Blue3k, if given any of the states in the East to manage for uninterrupted 8 years, you will end up as a disaster because of your lack of understanding about focusing more on Citizens Income Sources rather than IGR.


First work on the Citizens Income Sources and not State IGR.

truth.

EternalTruths:
SE: Taxation Sword and Economic Suicide

Taxation alongside Public Private Partnerships, Public Investments, Public support for Private Business Ideas(YOUWIN) are ways to build a region's IGR ( Internal Generated Revenue ).

Taxation is a double edge sword which can be deadly to an economy if not wisely applied.

There Are 3 Ways To Build The IGR of A State Through Taxation:

1) Capturing more people into the tax bracket

2) Increasing tax rates

3) Creating platforms to help the Citizens increase their income while keeping the interest rates constant.


History has shown us that capturing more people into the tax bracket only works when the people are financially buoyant.

History has shown us that increasing tax rates have ended up destroying not only the economy but led to several uprisings that toppled regimes.


The 3rd pathway has always being the path chosen by wise leaders and appreciated by the citizens.

EXAMPLE

Imagine Ebonyi State governor, creating a platform whereby a yam farmer who used to pay a tax of #100,000 at 10% on 1,000,000 naira he generates yearly, now generates 2,000,000 naira yearly by selling his yam to industries or foreign markets the State Governor was able connect him to.

That farmer will end up paying #200,000 at the same rate of 10%.

In the end, he pays more in tax at a constant rate of 10%.



South East Governors should be careful not to follow the dangerous path taken by some Governors in the South who keep increasing their IGR without first and foremost, creating platforms that can help their people make more money so that they can pay more tax at constant rate.


In few years to come, when oil wealth will diminish, those states who have succeeded in creating so many platforms to help their people make money through local & foreign industries or markets, will be the ones escaping the impending poverty due to decline in oil dollars.


Finally, we need to start asking our docile and treacherous Governors how many platforms have they created to help our people's pockets increase.


Let's start asking them especially those who seek to be re- elected or elected into power.

The issue we have is that simple thing called ELECTION, it's just too bad that we elect Governors based on party affiliation instead of what the candidates have to offer,

The ones that lack innovation and are clueless are usually the ones that can afford all the election expenses, they are usually the loudest, and the most notorious.

You speak of increasing the income of the common man, that can only be done by a Governor with innovation, and that is what we are seriously lacking in almost all the state levels in this country.

An innovative governor can create an oasis in the desert, make something with the resources at his disposal.

Taxation it's not the issue but rather it's what you do with tax payers money.

It's like business, if you expect to make more money, then you should spend more money buying more products (that's why I agree with you on your 10% even though the figures went up when the farmer made more money).

Those that know how to turn the common man to mid class citizens, will never be allowed to become governors let alone rule this country.

But for me our Governors are 60% of the problem in this country.

pryme:


The issue we have is that simple thing called ELECTION, it's just too bad that we elect Governors based on party affiliation instead of what the candidates have to offer,

The ones that lack innovation and are clueless are usually the ones that can afford all the election expenses, they are usually the loudest, and the most notorious.

You speak of increasing the income of the common man, that can only be done by a Governor with innovation, and that is what we are seriously lacking in almost all the state levels in this country.

An innovative governor can create an oasis in the desert, make something with the resources at his disposal.

Taxation it's not the issue but rather it's what you do with tax payers money.

It's like business, if you expect to make more money, then you should spend more money buying more products (that's why I agree with you on your 10% even though the figures went up when the farmer made more money).

Those that know how to turn the common man to mid class citizens, will never be allowed to become governors let alone rule this country.

But for me our Governors are 60% of the problem in this country.

The Governors are really useless.

Even Fayose who criticizes Buhari is a daft upstairs.


Seriously we lack innovative Councilors, LG Chairmen, Governors and President.

EternalTruths:




The Governors are really useless.

Even Fayose who criticizes Buhari is a daft upstairs.


Seriously we lack innovative Councilors, LG Chairmen, Governors and President.

Trust me if you have an innovative Governor, you will forget about Buhari and his poor economic plans.

Then there's something wrong somewhere.

my question is; don't they have advisers?

or they choose not to listen to their advisers.
no matter how dumb they are, are they expecting to do it on their own.

pryme:


Trust me if you have an innovative Governor, you will forget about Buhari and his poor economic plans.

Very True.


I also discovered that lots of Nigerians don't know that the main job of a Councilor or LG Chairman or Governor is to focus more on

1) Increasing the income sources of the people.

2) Reduce the money leaving the people's pockets.


The citizens aren't educated enough about this fact.


Just ask a Nigerian what he will do if found in such a leadership position and you hear him mention things outside these 2 things.

MyNewJackeT:
Then there's something wrong somewhere.

my question is; don't they have advisers?

or they choose not to listen to their advisers.
no matter how dumb they are, are they expecting to do it on their own.

The advisers are also dafts.


Just listen to peoples response to this important fact I have being trying to pass across on Nairaland and you will know why our leaders are failures.

EternalTruths:


Very True.


I also discovered that lots of Nigerians don't know that the main job of a Councilor or LG Chairman or Governor is to focus more on

1) Increasing the income sources of the people.

2) Reduce the money leaving the people's pockets.


The citizens aren't educated enough about this fact.


Just ask a Nigerian what he will do if found in such a leadership position and you hear him mention things outside these 2 things.

You going to far, most guys will even tell you you will do more looting than the present governor, they will tell you we are all corrupt so there is nothing you can do about it.

pryme:


You going to far, most guys will even tell you you will do more looting than the present governor, they will tell you we are all corrupt so there is nothing you can do about it.

We deserve the type of society we get.

EternalTruths:



The advisers are also dafts.


Just listen to peoples response to this important fact I have being trying to pass across on Nairaland and you will know why our leaders are failures.

I hope you know I'm not saying they shouldn't tax but that too much taxes kill businesses

MyNewJackeT:


I hope you know I'm not saying they shouldn't tax but that too much taxes kill businesses

I know your stance but

Will advice that they should center more on peoples pockets through productive platforms rather than IGR.

The south east governors cannot do anything more than what they are doing. The income from the federal government is so small that they can only achieve next to nothing after paying salaries. The ones building bridges and some projects should be applauded because these things cost money. The total budget of all five eastern governors is not up to 500billion naira which is equivalent of 1.5billion dollars. It is not as if they already have that money but they believe the money will come the next year after proper fiscal projections.

The igbo people in and outside the region need to be taxed. You dont just consider the east as the only place you come just during christmas without wanting to develop the state itself. If the eastern governors can adopt the method of diasporan tax system whereby every igbo man working pays tax to his respective state, then we can generate more funds for development.

If you leave the east like this, I am sorry, it will be the same story year in, year out.

Develpeast:
The south east governors cannot do anything more than what they are doing. The income from the federal government is so small that they can only achieve next to nothing after paying salaries. The ones building bridges and some projects should be applauded because these things cost money. The total budget of all five eastern governors is not up to 500billion naira which is equivalent of 1.5billion dollars. It is not as if they already have that money but they believe the money will come the next year after proper fiscal projections.

The igbo people in and outside the region need to be taxed. You dont just consider the east as the only place you come just during christmas without wanting to develop the state itself. If the eastern governors can adopt the method of diasporan tax system whereby every igbo man working pays tax to his respective state, then we can generate more funds for development.

If you leave the east like this, I am sorry, it will be the same story year in, year out.

The West that has relied so much on Taxation, have they being able to build a well developed society.?

EternalTruths:



The West that has relied so much on Taxation, have they being able to build a well developed society.?

The taxation should be aimed at expanding the economic boundaries in the east at the moment and not to paste IGR every year. That doesnt make sense. The east has potentials of being an economic hub but without money flowing in that region, then the needed investors will not want to be around there.

For example, the onitsha main market should have been transformed to a mall city since like 10years ago after amassing a strong title of one of the biggest markets in west africa and africa at large. It should be remodeled and expanded for bigger players and tourism. We are not just doing the right things in this part of the world. That market alone can provides for more than 40million nigerians in a year without much problem while another 10million can visit that place based on tourism and dubai-like tour. That alone can raise almost 500billion naira in a year.

We need to tax more igbos outside the region and outside the country to make the east economically viable by plugging those monies in smart investments which will open and expand economic boundaries totally. Then we can stop and generate other ways.

Develpeast:


The taxation should be aimed at expanding the economic boundaries in the east at the moment and not to paste IGR every year. That doesnt make sense. The east has potentials of being an economic hub but without money flowing in that region, then the needed investors will not want to be around there.

For example, the onitsha main market should have been transformed to a mall city since like 10years ago after amassing a strong title of one of the biggest markets in west africa and africa at large. It should be remodeled and expanded for bigger players and tourism. We are not just doing the right things in this part of the world. That market alone can provides for more than 40million nigerians in a year without much problem while another 10million can visit that place based on tourism and dubai-like tour. That alone can raise almost 500billion naira in a year.

We need to tax more igbos outside the region and outside the country to make the east economically viable by plugging those monies in smart investments which will open and expand economic boundaries totally. Then we can stop and generate other ways.

Well you have a point about the roles the Igbos in diaspora have to play.

I believe this can be achieve easily by the Governors encouraging Community Unions by giving quarterly or yearly awards & recognitions to Unions that are spending much on Community development.

EternalTruths:



God bless you.


I laugh at people who keep hammering so much on Taxation.

I have never seen a country that grows well through taxation.

Government should focus more on creating platforms that can help the people generate more money to sustain themselves.


Jomonic, when a Governor helps his people to make more money and encourage them to work on community infrastructures like schools, roads, hospitals, water systems etc, the burden on State resources will decline.


Jomonic, ask yourself why Igbos are not happy with the present set of governors unlike late Mbakwe tenure as the governor of old Imo State.



Blue3k, I wish you can get closer to those in power in order to see why they ended up as failures.


Ask yourself why it seems that prosperity existed during Jonathan's era and why it seems to have vanished under Buhari.


Jonathan worked on policies that increased money in people's pockets eg Increase in allowances, YOUWIN, more electricity, more foreign markets etc.

Buhari did exactly the opposite and the lives of the people crumbled.

To be frank with you Blue3k, if given any of the states in the East to manage for uninterrupted 8 years, you will end up as a disaster because of your lack of understanding about focusing more on Citizens Income Sources rather than IGR.


First work on the Citizens Income Sources and not State IGR.

All you listed above is the best way to promote widespread poverty while the few privileged and connected ones have all the resources with no obligation to pay back a portion of it for redistribution.

Statistics and data shows a stark opposite of your position in the above. The first world countries in Europe and America collect as tax about 30-40% of their huge GDP as tax.

The emerging countries in Asia, South America etc that some of our youths escape to collect between 16-25% of their GDP as tax. With these they finance public education, infrastructure, high speed train, subsidised public transport, health services. Poor struggling countries who are not resource awash like sparsely populated middle East contrires struggle to collect between 1-8% of their GDP as tax. The government is constantly in want, they usually depend on a single commodity or resource for public income. Once the price of these commodity fluctuates the entire country is trouble, debts mount to balance the budget, pay salaries and continue public works. Nigeria today struggles to collect 4-6% of its GDP as tax hence remains at the category of the poor third world countries. It beats imagination that any Knowledgeable person will advocate not collecting tax and have a more stable government income source and continue to depend on volatile oil commodity that will rise today and fall tomorrow as the source to plan our present life and future.
Is it any surprise the poorest countries in the world are those that failed to collect adequate taxes and followed the quoted advice?

Even back home the lowest poverty prevalence occurs in the state with the highest level of tax collection.

Ovamboland:


All you listed above is the best way to promote widespread poverty while the few privileged and connected ones have all the resources with no obligation to pay back a portion of it for redistribution.

Statistics and data shows a stark opposite of your position in the above. The first world countries in Europe and America collect as tax about 30-40% of their huge GDP as tax.

The emerging countries in Asia, South America etc that some of our youths escape to collect between 16-25% of their GDP as tax. With these they finance public education, infrastructure, high speed train, subsidised public transport, health services. Poor struggling countries who are not resource awash like sparsely populated middle East contrires struggle to collect between 1-8% of their GDP as tax. The government is constantly in want, they usually depend on a single commodity or resource for public income. Once the price of these commodity fluctuates the entire country is trouble, debts mount to balance the budget, pay salaries and continue public works. Nigeria today struggles to collect 4-6% of its GDP as tax hence remains at the category of the poor third world countries. It beats imagination that any Knowledgeable person will advocate not collecting tax and have a more stable government income source and continue to depend on volatile oil commodity that will rise today and fall tomorrow as the source to plan our present life and future.
Is it any surprise the poorest countries in the world are those that failed to collect adequate taxes and followed the quoted advice?

Even back home the lowest poverty prevalence occurs in the state with the highest level of tax collection.

Carnegie was the first American President to reduce tax and witnessed an increase in revenue.


Low taxation leads to higher revenue from historical evidence.


Even Reagan repeated same strategy and realized more revenue.



Creating more platforms for your people to make more money will enable them pay more in taxes at the same rate.


If you are a shoe producer at Aba who sells 1000 shoes every month and pays #10 as tax per shoe to the government and the Governor creates a platform for you to sell about 10,000 shoes every month, won't you end up giving more tax to the government at #10 per shoe.


So the focus should be on how to help the people make more money so that their tax contribution will increase at the same tax rate.

For comparison, New York State with population of 24 million spend $120 billion, with no obligation to spend on defence, army airforce navy. Nigeria as a country is barely able to scrape $20 billion for a population of 180 million. Yet we expect high speed train like new York.

When Nigeria and new York wants to buy trains or hospital equipment don't they buy from the same market and the same price.

It will take Nigeria roughly 6x7=42 years to achieve what new York will do in one year

Ovamboland:
For comparison, New York State with population of 24 million spend $120 billion, with no obligation to spend on defence, army airforce navy. Nigeria as a country is barely able to scrape $20 billion for a population of 180 million. Yet we expect high speed train like new York.

When Nigeria and new York wants to buy trains or hospital equipment don't they buy from the same market and the same price.

It will take Nigeria roughly 6x7=42 years to achieve what new York will do in one year

If you create more platforms for Nigerians to make more money at constant tax rate, the tax revenue the Government will generate will be high enough to acquire those infrastructures that are so costly for a community to acquire themselves.



So focus on the Citizens pockets.

EternalTruths:



God bless you.


I laugh at people who keep hammering so much on Taxation.

I have never seen a country that grows well through taxation.

Government should focus more on creating platforms that can help the people generate more money to sustain themselves.


Jomonic, when a Governor helps his people to make more money and encourage them to work on community infrastructures like schools, roads, hospitals, water systems etc, the burden on State resources will decline.


Jomonic, ask yourself why Igbos are not happy with the present set of governors unlike late Mbakwe tenure as the governor of old Imo State.



Blue3k, I wish you can get closer to those in power in order to see why they ended up as failures.


Ask yourself why it seems that prosperity existed during Jonathan's era and why it seems to have vanished under Buhari.


Jonathan worked on policies that increased money in people's pockets eg Increase in allowances, YOUWIN, more electricity, more foreign markets etc.

Buhari did exactly the opposite and the lives of the people crumbled.

To be frank with you Blue3k, if given any of the states in the East to manage for uninterrupted 8 years, you will end up as a disaster because of your lack of understanding about focusing more on Citizens Income Sources rather than IGR.


First work on the Citizens Income Sources and not State IGR.

The best way government can put money in the pocket of the masses are putting structures for security of life and property, infrastructure development and maintenance. Welfare programs will not work because they usually abused and government can in reality fund them from limited resources. The people it is meant for don't benefit from it. Taxation is the way. It can come indirectly or directly but each taxable citizen made to pay according to income. Tell me why the South East will perpetually cry marginalization for over 40 decades to fellow citizens who are benefiting from the imbalance and hence would never yield. It is time to try something else if the current strategy is not working. Youths are disenchanted with politicians in the South East because the politicians lack foresight and ability. The energy in the South if properly galvanized and channelled can transform the Igbo in five years. How about BOT bases for projects. Why wait for the hateful federal government to build river Niger bridge. Do you know from tolling the Niger bridge alone can generate over 5million naira daily. All of Nigeria use the Niger bridge so this toll money will not come from only residents of the southeast. Why leave it for government of the centre when they derive masochistic pleasure in postponing the reconstruction. I am not suggesting confrontation but common agreements can be worked out amicably between federal government and State government. This mindset is what we need to overcome the present challenges. We must look inwards.

EternalTruths:




If you create more platforms for Nigerians to make more money at constant tax rate, the tax revenue the Government will generate will be high enough to acquire those infrastructures that are so costly for a community to acquire themselves.



So focus on the Citizens pockets.

can you give any examples of any country where only a fixed tax rate has led to quick growth of the economy? All advanced countries I know employ a progressive tax rate where your relative use of public facilities and systems makes you liable to pay more back to society of your additional profits.
Despite this progressive taxation in the advanced countries a disproportionate wealth still ends up in the hands of few billionaires while a significant population though relatively small still live in poverty. Now you are advocating a fixed rate that will widen the already huge gap between the super rich and the very poor.
It is this gap that the Scandinavian countries attempt to bridge by ensuring that the high tax rate is used to create a welfarist state so that the vulnerable can have the basic of life. No matter what you do you will have the autistic child, down syndrome, physically challenge, blind, old people, etc and those who are not gifted to run a business.

Will you want to leave these people to the sharks of unbridled competition of survival of the fittest of the jungle? Even the doyen of capitalism USA tried it and long ago had to come up with antitrust laws, social security system, medicare, Obama care, to take care of weak. Only animals eat or kill of the weak in their society.

All these apart, I am not even advocating yet for increase of our tax rate, let everyone just pay their fair share. For example Lagos just said only 600,000 residents pay tax. Imagine if only 6 million are paying that means theoretically Lagos budget can go to about 3-4 trillion, imagine the number of high speed train, hospitals roads and bridges they can build in a short time.

EternalTruths:



God bless you.


I laugh at people who keep hammering so much on Taxation.

I have never seen a country that grows well through taxation.

Government should focus more on creating platforms that can help the people generate more money to sustain themselves.


Jomonic, when a Governor helps his people to make more money and encourage them to work on community infrastructures like schools, roads, hospitals, water systems etc, the burden on State resources will decline.


Jomonic, ask yourself why Igbos are not happy with the present set of governors unlike late Mbakwe tenure as the governor of old Imo State.



Blue3k, I wish you can get closer to those in power in order to see why they ended up as failures.


Ask yourself why it seems that prosperity existed during Jonathan's era and why it seems to have vanished under Buhari.


Jonathan worked on policies that increased money in people's pockets eg Increase in allowances, YOUWIN, more electricity, more foreign markets etc.

Buhari did exactly the opposite and the lives of the people crumbled.

To be frank with you Blue3k, if given any of the states in the East to manage for uninterrupted 8 years, you will end up as a disaster because of your lack of understanding about focusing more on Citizens Income Sources rather than IGR.


First work on the Citizens Income Sources and not State IGR.

While the same Jona was borrowing hundreds of billions to pay workers salary back in 2014 when oil was selling for almost $100/barrel?


The same Jona who collected more revenue than any government in the history of Nigeria, while at the same time borrowing to pay salary and, zero meaningful infrastructures on the ground, looting and stealing at every level of government, roads, and bridges crumbling, 2nd NB never built and the list goes on and on.

Your imaginary prosperity under jona was corruption masking underlying structural disaster, corruption was greasing the economy from person to person corruption to banks soaked in ill-gotten gains and looted funds which started disappearing after May 29th 2015 when banks were forced to give up looted funds, meaning no more slush and looted funds to artificially keep afloat hence mas layoffs .

Looted and drained foreign reserves mean weakened currency and expensive or inability to obtain imported raw materials for industries which also means stalled growth and hiring, meaning unemployment.


Jona set us up to fail


https://www.youtube.com/watch?v=ltrsjqTE_p8


^^^^^^ Okonjo explained very well how Jona created the problems we are facing today.


This ignorant Jona thing with many of you gets very nauseating simetimes.

jomonic:


The best way government can put money in the pocket of the masses are putting structures for security of life and property, infrastructure development and maintenance. Welfare programs will not work because they usually abused and government can in reality fund them from limited resources. The people it is meant for don't benefit from it. Taxation is the way. It can come indirectly or directly but each taxable citizen made to pay according to income. Tell me why the South East will perpetually cry marginalization for over 40 decades to fellow citizens who are benefiting from the imbalance and hence would never yield. It is time to try something else if the current strategy is not working. Youths are disenchanted with politicians in the South East because the politicians lack foresight and ability. The energy in the South if properly galvanized and channelled can transform the Igbo in five years. How about BOT bases for projects. Why wait for the hateful federal government to build river Niger bridge. Do you know from tolling the Niger bridge alone can generate over 5million naira daily. All of Nigeria use the Niger bridge so this toll money will not come from only residents of the southeast. Why leave it for government of the centre when they derive masochistic pleasure in postponing the reconstruction. I am not suggesting confrontation but common agreements can be worked out amicably between federal government and State government. This mindset is what we need to overcome the present challenges. We must look inwards.

I am not talking about welfarism.


Creating platforms for people to generate incomes for themselves is different from welfarism.


Take note that there are 3 major builders of infrastructures

1) Government input

2) Private Investments

3) Community Unions


The best is Community Unions followed by the Private Investments before the government.

Ovamboland:


can you give any examples of any country where only a fixed tax rate has led to quick growth of the economy? All advanced countries I know employ a progressive tax rate where your relative use of public facilities and systems makes you liable to pay more back to society of your additional profits.
Despite this progressive taxation in the advanced countries a disproportionate wealth still ends up in the hands of few billionaires while a significant population though relatively small still live in poverty. Now you are advocating a fixed rate that will widen the already huge gap between the super rich and the very poor.
It is this gap that the Scandinavian countries attempt to bridge by ensuring that the high tax rate is used to create a welfarist state so that the vulnerable can have the basic of life. No matter what you do you will have the autistic child, down syndrome, physically challenge, blind, old people, etc and those who are not gifted to run a business.

Will you want to leave these people to the sharks of unbridled competition of survival of the fittest of the jungle? Even the doyen of capitalism USA tried it and long ago had to come up with antitrust laws, social security system, medicare, Obama care, to take care of weak. Only animals eat or kill of the weak in their society.

All these apart, I am not even advocating yet for increase of our tax rate, let everyone just pay their fair share. For example Lagos just said only 600,000 residents pay tax. Imagine if only 6 million are paying that means theoretically Lagos budget can go to about 3-4 trillion, imagine the number of high speed train, hospitals roads and bridges they can build in a short time.

You talk of taxation to help the poor.


My friend go back to history and you will realize that taxing the rich to help the poor never worked in all societies it was applied.

The best way to help the poor is to

1) Create platforms that can enable them to exchange their goods & services for money in order to increase their pockets.

2) Empower them with the knowledge to produce more & diverse goods & services.


So focusing on Taxation to help the poor always backfire.



As for your initial question on how reducing tax can increase revenue, google 2 American Presidents on their tax reforms.

1) Calvin Coolidge

2) Reagan.


You can check Rich Dad Poor Dad by Robert Kiyosaki for better understanding.