Tax System Shifts Burden, Causes Wealth Loss: Impact on Society
Government revenue comes from taxes and is used to fund public services. This study looks at how tax systems and policies work, how the tax burden has shifted, and how much wealth is lost due to taxation. Taxes are mandatory payments to the government, with no direct benefits in return. Indonesia has 10 laws governing tax policies, and changes in tax burden lead to welfare loss. The excess burden caused by taxes results in welfare loss for the people.