A Comparative Study of Indirect Taxes in Transition Economies and the European Union

There is often a great deal of resistance to increasing individual income taxes because taxpayers can see the money being taken out of their pockets. Furthermore, the taxpayers being fleeced vote and politicians hesitate to increase taxes on the masses, since the result might be losing their elected office. There is less resistance to corporate tax increases because corporations don't vote and there is a widespread perception on the part of the masses that corporations have some moral duty to pay taxes. There is also a certain amount of envy involved, since corporations are perceived as being rich and therefore more able to pay taxes.Indirect taxes are easier to raise because the people don't see them as easily. There is less resistance where taxes are not seen. There is a certain immorality involved in hiding taxes from those who pay them. People have a right to know what they are being forced to pay and indirect taxes make it more difficult, or even impossible, to know how much the government is taking at the individual level.This study compares value added tax (VAT) rates in various transition economies, then compares VAT rates in transition and European Union countries to determine which group pays higher VAT rates