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how will you deal best with black market?

Leaning
Posts: 2,449
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3/4/2018 1:18:18 AM
Posted: 1 year ago
In USA
Monitor it.
Occasionally purge it to keep it manageable.
Only intervene when necessary, such as when deals pose threats to public safety.

In Dictatorship
Deny it's existence but use secret police to manage and tax it.
SeriousThreat
Posts: 9
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3/18/2018 7:23:15 PM
Posted: 1 year ago
Become a cashless society - without physical cash, monitoring and controlling the flow of money is relatively easy, though not 100% safe and does not mean that would be the end of black market, but it should become smaller, as there are not so many creative accounting principles (not so many accountants could make it up) to hide "envelope" salaries, fraudulent transactions etc.

Besides that there should be some improvement in incentives to pay the tax, that would mean reforming some long time hurting economical areas with which residents of the country is not satisfied (depends on the country itself) - that would of course mean ignoring or reforming some kind of lobbying law, as those reforms definitely hurt somebody in some way or another. So that people see where their tax money goes.

Many times people dodge tax just because of mentality, and that could be changed too. With some additional incentive - like awarding those citizens, that report non-tax payers monetary would probably make society more aware of paying tax, or just not looking too rich for his job. (like reporting neighbor who drives luxury car although working in job that pays average salary)

Above mentioned solution leads to another reform - to make salaries public or at least on professional level in every company - that could also lead to reduction of inequality, how ? For example, in my country, talking among peers about your salary is some kind of tabu topic, and no one knows exactly how much a person earns, but if everyone would know everything, there would be greater mobility of employed persons and negotiating salary would be in favor of employee, that could improve income levels of working class, and would help with the solution mentioned above, it is much more easier to report on no tax paying if you know what this person should earn officially.

At the same time, of course, there should be rigorous corruption reduction methods - if country is not corrupted, citizens see paying tax more reasonable, so they know that every dollar spent on tax is well spent. How can corruption be fought ? That's story for another time, I guess.

Controversial solution also could be progressive tax - small income households would rather pay more tax if it matches their income level and they see the fairness in overall tax system, but progressive tax (balanced not rightly) would make incentives to dodge the tax those in higher income brackets.
chanyuan
Posts: 149
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6/21/2018 2:18:42 AM
Posted: 1 year ago
chanyuan2018.06.21
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Lookchup
Posts: 76
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8/27/2019 11:57:55 AM
Posted: 3 weeks ago
How Black Markets Work. A black market is a transaction where goods or services are exchanged illegally. . . . And while it's perfectly legal to sell hamburgers, When an all-cash restaurant does not remit to the state government the mandatory sales taxes on its transactions, It too has entered the black market.

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