How does tax evasion contribute to economic inequality?
Tax evasion allows wealthy individuals and corporations to avoid paying their fair share of taxes, which can lead to a reduction in public services and social programs that benefit lower-income communities.
Can you give examples of how this affects society?
Certainly! When tax revenue decreases due to evasion, funding for education, healthcare, and infrastructure often suffers, disproportionately impacting those who rely on these services.
What measures can be taken to combat tax evasion?
Governments can implement stricter regulations, increase transparency in financial transactions, and enhance penalties for evasion to deter this behavior.
Is there a link between tax evasion and political power?
Yes, individuals and corporations that evade taxes often have more resources to influence political decisions, which can perpetuate inequality.
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