Shura Is Quarrelling With His Bread And Butter

An economics lesson for truant Lukashenka.

Yesterday, at the behest of the Shklou usurper, the puppet Ministry of Finance announced multitude of extortions from Belarusians. The logic is simple: the more taxes we make, the more money we will get. Isn't it so? Well, nope, the MKB telegram channel writes.

The agroeconomist certainly missed the Laffer Curve in macroeconomics. And its meaning is simple: an increase in the tax rate initially leads to an increase in budget revenues, but then, after a certain level, leads to a fall.

In Belarus, this scenario would mean an increase in taxes, which, on the contrary, would lead to a decrease in budget revenues. This will happen because people will have no incentive to pay taxes and fees honestly, but they will look for new ways to avoid payments.

And this is not to mention the increasing outflow of investment because of higher taxes, reduction of real incomes of the population, which will lead to a decline in the quality of life of the population.

Shura again thinks he is sawing the golden weights, but in fact he is quarrelling with his bread and butter.