Income tax and public servants

Economy
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1

Lowering income tax for public servants is a logical step when considering the flow of government funds. Public servants are paid directly by government budgets, which means that their salaries come from taxpayer dollars. When these workers are taxed on their income, it essentially creates a circular transfer of money—paying wages with one hand and collecting a portion back with the other. This process results in administrative costs and inefficiencies as the government reallocates funds that it already issued. Reducing or eliminating income tax for public servants would streamline this system, minimizing redundant fiscal transfers and allowing public funds to be used more effectively.