Need Money? Let Indirect Tax, Special Consumption Tax, VAT

Osman Abi, you earn a lot. Why don't you pay the tax to the state?

I'm so fucked!

Sure, mate, right away. 

How much should I pay?

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Wouldn't it be nice if it could be done so easily? 

We are the world champion in indirect taxes. 

On the contrary, we are at the bottom of the world in direct taxes.

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What does this mean? 

What is indirect tax and what is direct tax?

We can define direct taxes as taxes levied on the work or service performed, such as corporate tax, property tax, motor vehicle tax and income taxes levied on the wages of employees.

Indirect taxes, on the other hand, are a form of taxation that was considered because taxes cannot be collected directly. 

We can call indirect taxation indirect taxation when taxes are collected indirectly in another way, i.e. through methods such as VAT and SCT on everything purchased.

First of all, I should point out that this tax imbalance in the state's tax revenue can also be reflected in the income distribution of citizens and cause a great income imbalance.

Because in a sense, this means that those who earn less are taxed more and those who earn more are taxed less.

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What do you mean? 

Is it necessary to tax those who earn more? 

Why is that?

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Isn't that the norm?

In other states, the tax revenues of the state are organised in such a way as to protect those who earn less.

This is in a sense positive discrimination.

In the modern world, it has been accepted in principle to tax those who earn more, thinking that if someone earns a lot, tax is not much of a problem for him, he can pay a little more tax.

Those who earn less, on the other hand, pay relatively less tax. 

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I think there is a problem with this logic too!

If we are all equal, everyone should pay the same amount of tax!

In my opinion, neither those who earn more should pay more tax, nor those who earn less should pay less tax.

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Why do we have to pay so much tax anyway? 

Can't everyone pay enough tax?

If everyone was taxed at the same rate, those who earn more would pay more tax and those who earn less would pay less tax.

I think if everyone paid enough tax, everything would be fine, that would be the end of it!

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Here is the secret!

You say enough, but how much do you think this tax should be?

Actually, I have written about this in many of my previous articles. 

The money in circulation in the market is initially the money that the state prints and gives to the citizens.

There are various methods of distributing money to citizens. I will not go into these details again.

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However, if the state distributes too much money to the market, the money has no value.

Therefore, the excess money in the market must somehow return to the state.

This money will be transferred back to the market by the state, so that the state can both provide the services it has to provide at a price and keep the market under control.

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Money is just a tool invented by mankind for the convenience of shopping.

Didn't the Lydians invent money so that they could exchange among themselves more easily?

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Yes, the invention of money dates back to the 7th century BC.

Although, if you say paper money rather than coins, it was invented by the Chinese.

The Chinese started to use the first paper money in 806 AD.

Why did they wait so long to use paper money?

There are 15 centuries between the invention of coins and the introduction of paper money?

I don't know, maybe they had to find paper first.

In fact, the Chinese had already started using leather money in 118 AD.

On the other hand, the introduction of paper money in the West coincides with the end of the 17th century.

In other words, western states switched to paper money centuries after the Chinese.

Today, even the use of paper money is almost non-existent. 

Money is now digitalised.

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Yes, we say that money is produced by the state and released into the market.

A certain amount of money has to be in circulation in order to be able to make purchases, but in order not to print money again and again, it is necessary for the state to somehow collect the surplus of the circulated money.

We call this money collected by the state a tax.

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Your taxes will come back to you in the form of roads, water and electricity!

The state does all that work with our money!

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It's all nonsense!

Money is already the state's money, it can print as much as it wants whenever it wants, the state doesn't need your money!

What it collects from you is only the surplus that should be in circulation! 

It has to be so!

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If those in charge of the economy fail to achieve this balance, then the problem begins!

If the money printed by the state accumulates uncontrollably in the hands of some people, then there will not be enough money in circulation and additional money will have to be printed in order for the market to function.

And this additional money means inflation!

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When you provide the market with additional liquidity (yes, that's the name given to money in circulation!) to circulate, you cause prices to rise.

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In fact, you have to keep the balance in this business. 

In civilised countries, central banks carry out this work. That is why it is considered essential for central banks to act independently!

Because too much liquidity means inflation, while too little liquidity means the cost of living, in a sense, not enough liquidity in the market means the problem of making a living for those who do not have enough income.

There will be neither too much liquidity nor too little.

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How will we control this?

We will do this by establishing a proper organisation of the money we collect, i.e. taxes, from whom and at what rate.

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Western states have balanced this by taxing those who earn more and those who earn less. 

The terms "more" and "less" here mean proportionally less or more on the basis of income; normally, those with less income already pay less tax with an equal tax rate.

You will adjust the event rates in such a way that those with low income will pay less tax in proportion to their income, while those with high income will pay more tax in proportion to their income.

Thus, in a sense, you will prevent the accumulation of money in the hands of some people.

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You know, man is insatiable!

* Let me earn a lot! 

* Let me be very rich!

* Let the people around me spin round because I'm rich!

* Let me have a yacht and a mansion!

* Let me have this and that!

Of course you should.

If you have the means, if you are lucky, if you have thought of something that no one else has thought of, and if you have turned it into a source of wealth with commercial intelligence, of course you should have everything. 

All your earnings are halal for you. As long as you earn in a halal way!

However, unfortunately, according to economic formulae, if you have high earnings, the tax rate you have to pay to the state in proportion to your income must also be high. 

Live knowing this!

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I won't! 

Why should I give what I've earned?

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How can you not pay taxes?

That's easy, I support the political power, instead of paying taxes, I distribute some money here and there, I make sure that the politicians keep the tax rates low for me!

For example, I can buy diesel for my yacht with low taxes. 

I'm in the diamond trade, I'll get low tax rates for the diamond business!

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But as I said, in order for the state to keep the economy under control, it needs to collect taxes regularly. 

If you don't pay taxes, if he doesn't pay taxes, how can the state collect taxes?

I don't know about that! 

I already distribute enough money here and there. I also take risks!

Let the state find a solution!

For example, whoever spends what he spends should be taxed according to what he spends!

If you eat an apple, let the state take the tax from the apple. If you eat bread, tax the bread.

Not from my earnings!

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And look, this method is more fair, I eat apples and pears too. 

I even eat the best pears. 

I pay taxes as much as I eat, and so does the one who eats dry bread!

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Let the state raise taxes on petrol, taxes on motorway tolls, taxes on imported telephones, taxes on alcohol, cigarettes, taxes on everything from needles to thread.

Everyone should pay taxes on what they spend, so that everyone pays taxes equally!

I also live, I also spend, therefore I also have to pay this indirect tax.

Wouldn't that be fair?

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Unfortunately, it's not enough. Low-income earners have a very hard time!

I don't care how you do it, as long as you don't touch my earnings, that's what I think is fair!

What should we do if I earn too much? 

I already avoid tax as much as I can, and the amount that cannot be avoided, I have to pay tax at the corporate tax rate.

What more do you want from me?

Of course the power will be in my favour, I have the money, I have the power, what other choice is there?

Who do you think gives campaign money during elections?

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Thus, those in power say, impose taxes on those with low incomes, those with wages. 

Because they have no other choice!

They cannot do otherwise!

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Because capital does not support those who say they will do otherwise! 

Those who do not have the support of capital, unfortunately, cannot be elected!

He could not be elected!

We have seen this once again together!

What did Mr Kılıçdaroğlu say? Did he say he would take 418 billion dollars from you?

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On the other hand, yes, as I said, it is technically not that easy to find the balance in this business. 

If you try to cut interest rates indiscriminately by saying "interest rates are low", then you will sit on your head. 

Inflation skyrockets, the economic order turns upside down.

These things should be left in the hands of those who know.

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When I say those who know, I mean those who can make the right choices should manage the economy.

Because, on the one hand, preferences are also important in economic management.

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Economic management is a delicate business; it must proceed with very careful steps.

If you turn the steering wheel too fast, you will cause the vehicle to somersault. 

In economic management, steps must be taken very carefully.

In other words, these things cannot be done by saying I am an economist.

Neither can it be done by saying "Nas, brother, nas".

Although I am also aware that the motives of the preferences at that time were not nas. 

This discourse was thought to be a public explanation of what was intended to be done.

We were supposed to become a cheap labour country like China. Thus, everything would be made in Turkey and exports would explode!

Now everything has exploded in our hands!

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I don't think it is possible for the country to recover until the balance of power and the balance of taxation is settled.

Unfortunately, when the power is in the hands of those who have money, the tax system is organised in the way they want, and so is the economic system!

In short, you can't win elections by saying I know who is doing what, and I will bring it back to your noses!

And when you can't win the election, the bazaar gets confused!

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We all have to pay taxes, because this is a money circulation.

We can't do anything with the money we save under the mattress. 

Money has to be part of the system, money has to circulate in the market.

So money should be a means, not an end.

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Yes, we all want to be rich. 

But for some to be rich means for others to be poor. 

It's a matter of balance!

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The more the gap in the income balance widens, the more likely it is that one day the gap will be closed, and who will be burdened by this imbalance on that day is unknown.

Those who manage the money at the head of the economy know what I am saying much better than I do. 

There are universal economic rules that must be followed to balance this business. 

The aim should be for the economy to run at its own pace with minimum interest, but steps should be taken very carefully to achieve this goal.

This means making the right choices.

Whichever direction you choose, you will swing the economy in that direction.

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Since we have the indirect tax championship, it seems that the government has made its preference in favour of capital.

I did not expect otherwise from this government. 

However, unfortunately, we do not have a public that can perceive the issue in such detail. 

The level of education of our people is not sufficient, and even if they are educated, no one has to know economics in this detail.

Those in charge should be people who love their country.

Also, specialised institutions within the state should be able to carry out the necessary supervision.

But this government first destroyed the state's supervisory institutions.

Because it was a shackle on his feet.

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O my low-income brother, I am talking to you, you voted for this government only yesterday, did you understand what I wrote?

Let me say it again in simple terms for you to understand.

You will wait a long time for the economy to recover! 

You will be buried under this wreckage again, tomorrow you will not even be able to find money to buy a loaf of bread!

Let's consider ourselves lucky if we don't end up worse than Venezuela. At least they have oil!

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But you didn't even understand what I said, did you?

You think Reyis will fix it, don't worry, don't you?

What can I say? You're right. Maybe Reyis will fix it. 

Just wait, someone will fix this situation one day.

Love and regards to everyone from Moscow 

(Note: The graph is last year's graph! In this graph, there are two other countries that are worse than us. As far as I understand, according to this year's graph, we have taken the championship!

Look at the countries on the left and the countries on the right. You can see the difference immediately).