In more evolved societies, something very different happens.
When survival needs are largely stabilized, people operate more in the creation zone.
In such societies:
• Tax bases are broader
• Tax-to-GDP ratios are higher
• Compliance levels improve
• Institutions become stronger
Interestingly, tax rates may even be higher.
But people are often less resistant to paying them.
Why?
Because money is no longer seen as a scarce commodity.
People believe they can create prosperity again.
When people believe wealth can be recreated, taxes stop feeling like loss.
Reflection:
Why do you think prosperous societies often accept higher taxes more easily?