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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

In Ukraine People Pay Taxes For Themselves and Four Others

13 November, 2012 - 00:00

There is not much sense in arguments over how much money is needed in circulation; should we launch the money printing machine; the pluses and minuses of monetarism will mean very little until it is clear what money we are actually talking about.

The simple figure – only 18% of GDP is covered by hryvnia resources — takes the argument to another dimension. It turns out that the government estimates the state budget (defining tax volumes and undertaking social obligations to citizens) with an allowance for 100% coverage, but they actually have only one fifth of this sum. This results in heavy taxes and destructive battle for their collection, stratospheric interest rates in commercial banks, which do not make it possible for production, trade, or other activities we are familiar with to get credit. In brief, people and legal entities pay as much tax on one earned hryvnia as if they earned five.

(For further information see Iryna Klymenko’s article from page "Economy")

 

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