Taxes and Growing Pains (original) (raw)

Taxation as an inherent power of the state is an effective tool for development. Taxation may be extractive but it is better than borrowing and aid. Borrowing and aid have been tools of machinations by transnational organizations to interfere and even control politics and economics of recipient countries. Governments need to wean themselves from the easy yet undignified addiction to borrowing and aid. Governments need to be dependent on taxation to finance public service. An efficient and effective tax system is therefore an essential to good governance. Tax collection in turn should promote and support the human and natural capital of a country, which in turn improves tax revenue. This cycle of improved tax collection and wealth stimulating governance will propel any country to true inclusive growth.