What would happen if everyone just stopped paying taxes?

Discussion in 'Markets & Economies' started by SpacePete, Feb 3, 2016.

  1. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    A hypothetical question: Any idea what would happen if the government's tax receipts dropped to near zero? Would there be chaos? Would public services like hospitals, schools, police and fire disappear? Or would the private sector step in to meet demand?

    And what would happen to those dependent on welfare payments?

    Thoughts?
     
  2. alor

    alor Well-Known Member Silver Stacker

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    bank accounts will get frozen first while they check your tax bill
     
  3. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Most Australians have almost zero savings.
     
  4. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    Around half of Australian households pay no net tax.
     
  5. willrocks

    willrocks Well-Known Member Silver Stacker

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    Wonder how many pay tax, then receive back more than they pay in FTB, childcare rebates ... etc?
     
  6. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    I assume that was what was meant by "no net tax".

    So what happens to all the precious recipients of government handouts if the government has no money to pay them?

    Again. what would happen if the government had close to zero tax revenue?
     
  7. SilverDJ

    SilverDJ Well-Known Member

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    Not me, I pay a shit ton of tax, personal and business.
    So either I'm earning too much, or I'm not cheating.
     
  8. jnkmbx

    jnkmbx Well-Known Member

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    Except in their Super accounts I suppose.

    Isn't the sentiment here that it's only a matter of time until the government started dipping into people's Super? :/

    Anyway, if it happens, the governments role would be reduced to administration only.
    However, I wouldn't be so quick to trust corporations to look after the people. >_>
     
  9. bordsilver

    bordsilver Well-Known Member Silver Stacker

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    I think any attempt to answer this question is dependent on WHY tax receipts suddenly did not happen for some reason.

    For me, the initial credible ways for this to happen is for people to essentially lose trust in Government or trust that the Government has lost the ability to enforce its demands for payment.

    In the first scenario you are essentially talking about a popular civil war against the authority like the English Civil War or the American War of Independence. Similar consequences are likely to eventuate would be my guess.

    In the second scenario you are basically saying that the police/army essentially side with the people in refusing to enforce the edicts of the parliamentarians. This sort of scenario can play out in many ways (including recent Egyptians experiences) as it depends on what's driving the sudden mass disobedience and what alternative social institutions exist when the Govt. vacuum occurs.

    I suspect that in fleshing out the initial cause for the loss of tax receipts you will largely be able to answer your own question. A key driver in any scenario however, is whether or not trust amongst strangers is largely preserved or whether such trust is fundamentally broken. The former most likely means that the transition will be relatively seamless while the latter is essentially capital destruction, and potentially factional warfare for a significant period of time until a particular faction has the ability to restore a semblance of order and law and justice.
     
  10. precious roar

    precious roar Active Member

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    Wet dream for big corps.
     
  11. Killface

    Killface Well-Known Member Silver Stacker

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    Yeah imagine if they stopped paying tax.

    ...oh hang on...
     
  12. alor

    alor Well-Known Member Silver Stacker

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    Russia considering tax on junk food

    tax the junk, then there is no escape, when you carry too much weight around when visiting doctor etc, there is additional tonnage fees, there is one when you hop on a bus, step on the scale please etc
     
  13. systematic

    systematic Well-Known Member

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    Royal families around the world would go broke in world record time ...
     

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