Fiscal Policy to Reduce Income Imbalances
Tuesday, August 7, 2001
As the biggest source of revenue for the budget, the tax system must be properly managed so that it can begin to be used as a tool for bringing about greater equity.
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Whenever you get individuals in a particular country whose wealth is excessive, you can be sure you will also find people living in extreme poverty. This may be said to be an almost universal rule, albeit with certain exceptions such as in the case of Saudi Arabia or Kuwait. Nevertheless, in almost all developing countries, including Indonesia, the two extremes coexist side by side, like the difference between night and day.
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