In the previous article, we described the various methods developed in the West to cope with the ever-burgeoning public sector. Many Western techniques, methods, systems and ways of thinking cannot be applied in Macedonia, for instance. The public sector is a great burden on economies everywhere. It is mostly financed by collecting taxes from individuals and businesses. Taxes are re-allocation of economic resources.
Taxes are a penalty paid by the more productive and honest segments of society.
Small wonder that taxes have a bad reputation in the West. They are considered to be both unjust and inefficient. But taxes are both necessary and inevitable. There is no better way to finance the operations of the government and of the public sector. The more taxes collected - the heavier the involvement of the state in the economy.