AFRICA
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Africa: Public finance and legislative procedures
Financially-strapped African nations must make difficult choices when calculating the opportunity costs of different decisions they must make regarding financing. The goals of this hypothetical African nation are to encourage personal savings on the part of citizens but also to encourage foreign investment. One of the suggested reforms has been to institute a property tax. While property taxes have been frequently used in the United States to fund education, this paper will suggest alternative prioritization to accomplish national goals.
Property taxes
Property taxes are often controversial as a source of soliciting economic revenue. On one hand, they have the advantage of not taxing the income or the consumption of the poorest members of society. There is the presumption that those who are able to own property have at least some subsistence income. However, merely because someone has a modest amount of property does not necessarily mean he or she is wealthy and such a proposal could result in undue taxation upon poorer, small, subsistence farmers. Those with property (usually residents in agrarian locations) might begin to resent those living in urban areas, creating class conflict as well.
Using property taxes to fund local initiatives such as education is particularly problematic, given that this inevitably means more...
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