Is government need money? Yes! How a government make money? As you know government make money from tax and duty. Tax and duty is a traditional way government makes money legally. Example of tax and duty are income tax, corporate tax, sales tax, stamp duty and so on.
When you are required to pay for income tax, do you pay it willingly and happily? Of course, no! This is because the money is not easily earned and you do not see what you get in return. The money may be used for services or projects that you may not needed but just benefited a small group of people.
Some people say that government can make money by printing more banknotes. This is more direct way. Anyway, this is not a good way to make money. This will increase the money circulation in the market. When everybody has a lot of money to buy the same thing, the price of that thing will increase. Then, the cost of operating the country will increase also. At that time, the tax and duty will be increased also. Finally, it does not help.
There are some good ways to make money by governments.
1st make money tips, increase the money penalty for the illegal action. If there is no money penalty for the offenses, add in the money penalty. For example, if a handbag snatch thieve found guilty, what will happened to that thieve? Maybe he or she will be jailed and get free meals everyday. That’s all. Why not put some money penalty? For example, money penalty 50 times of the value for the things in the handbag. Another example, what is the penalty for drug trafficking? Maybe death. How about death and money seizure penalty? It is OK to impose high money penalty on crime because most of the people hate crime. The government can make money and at the same time prevent crime. Kill two birds with one stone. The offender has no money to pay? Then, pay by installment including the interest. The government approves so much banking and finance license. Doesn’t the government know how a bank and finance company make money?
2nd make money tips, increase the money detecting agents such as traffic police and traffic camera. Everyday there are a lot of vehicles break traffic rules. Anyway, since traffic police does not know about it, then no summon is issued. As you can see on the road, during the peak hour, there are people who cut the long traffic queue. While you are waiting in the long queue, do you like other people to cut the long queue and drive into your front? Of course, you don’t like it because you have been waiting for so long. There must be some price for do not want to wait. Time is money! So, it is OK to issue summon and collect money. The interesting point is that such incident happened everyday at the same hour at the same place. Therefore, traffic police just need to stand there to collect money. This is the easiest way to make money.
3rd make money tips, let people give the money willingly and happily. There is only one reason where people will give the money to government willingly and happily. This is because government provides the premium services to the people. For example, it takes a few dollars to get a vehicle number plate. For certain special number plate such as 8888, LOVE, JACK, ROSE and so on may cost up to hundred thousands dollar to obtain it. In some countries, the smart governments set up the vehicle number plate with the name of celebrities for bidding. This is how a government can make a lot of money. Since government provides a lot of services to people, so it is very easy to make money by providing premium services to people. For example, government provides basic services such as national registration, passport, driving license and birth certificate issuing. The government can provide premium services by letting people choose the lucky number they want on the documents and make some money.
It is government responsibility to provide basic services. For premium service which is good to have but not necessary, government can charge a handsome sum of money and make money from there. Therefore, government should not say that it has no money. The next time government says that it has no money, ask the government to visit this website.
thanks for the adviced balki