We have no choice. Why not taxes cannot be reduced during the war

"Taxes are not reduced during the war. help can not be spent on the army. Only taxes go to the army. Well, and a printing press. " Opinion. We. We are from Ukraine and let us reduce taxes in Ukraine . . . And let all taxes be 10-10-10, well . . . Let VAT be 10. Let the income tax be 10. And let the social tax be 10. Why exactly 10? The figure is wonderful. The experience of Sri Lanka, where they reduced taxes and received a default, inspired Ukrainian populists. And now Balashov is not so lonely with his 5. 10.

Although, in principle, he has never been lonely with his sect witnesses to abolish taxes, and now he is likely to be jealous. Still, strangers came to its original territory. It is even a meanwhile. The man caresses for so long and cherished this niche, and here, they broke, touched on the digging. Poplists are different. We are used to the traditional populists A la Yulia Vladimirovna in Ukraine. This is a traditional Ukrainian populism - let's give everyone more money and more.

And everyone will be happy. At least some time. Then, of course, inflation and devaluation come, eats all income growth and makes people poorer. Now we are not studying traditional populism. Let's reduce (and better cancel) taxes and will be happiness. At the same time, it is said that a decrease in taxes will lead to an increase in payments and no one will notice anything. Where and in what country of the world it was - history is silent.

Instead, a recent story in Sri Lanka clearly shows how quickly the default comes after a sharp unjustified tax reduction. Well, right now they conducted an experiment. It seems specifically for Ukraine. And they received default and folk excitement. And the president fled, however, not to Rostov, but to the Maldives. Because it does not lead to economic growth. It just doesn't bring everything. Instead, the hole in the budget grows instantly. So, debt grows sharply.

And so the default knocks on the door. A very simple and visual picture. And, by the way, as with the first type of populism, inflation and devaluation also come. Do you like the idea of ​​reducing taxes? Of course. No one likes to pay taxes. In general. In any country in the world. And if possible, do not pay - does not pay. Therefore, every businessman is always for tax reducing. Are high taxes a major problem in Ukraine? No. And even before the war it was not.

The growth of the economy, according to the business itself, is not the rule of law. Courts, courts and once again courts. Well, security forces. The tax level has never been critical for business in Ukraine. And it was before the war. Now during the war, the level of taxes does not play a role for business when making decisions. Business or feels safe. Or not. And if you start looking at taxes, first of all, it should be about the reform of the service itself, transforming it into a service function.

But it is always easier to mathematically reduce taxes. And all for. And no corruption will suffer. And yes, during the war taxes do not reduce. War is expensive. During the war, taxes are lifted. Unfortunately. And it is very infantile to believe that it is possible to reduce taxes and wage war. So no one has succeeded in history. And it is important to remember that Western aid cannot be spent on the army. Only taxes go to the army. Well, a printing press.

Does the business win if taxes are reduced? At first yes. Everything is here, as with classic populism. First, everyone likes everything. And then, when macroeconomic stability is destroyed, it ceases. Ask the business in Sri Lanka, how do they have an investment climate during a default? Not to mention other participants in the process. Not entrepreneurs. After all, pensions should be taken from somewhere. And, oddly enough, they are taken from taxes.

Do you need to close the holes and fight the schemes? Of course. Can it increase budget revenues? Can theoretically. Maybe even very. But first let them grow. And we will see a terrible surplus of the Ukrainian budget. And then we will decide what we do with this surplus. The reverse process is slightly adventurous. And adventures with your economy during the war are a bad idea. Well, purely technically. If you be a pedant and boring stroke. Reduce VAT to 10 percent is a violation of EU rules.