Moderator’s remarks

Since we are all living in modern nation states, the question of paying taxes is relevant for all of us. One of the fundamental roles of state is its re-distributive function. In order to redistribute the wealth, people have to pay taxes which generate the revenue of state. The problem arises when we start to discuss how much every citizen will pay. Basically, there are three types of tax systems. First, progressive system of taxes means that the more you earn, the more you contribute on taxes. Second, proportional tax system means that the state imposes the same rate of taxation regardless of income. Third, regressive tax system is the opposite of progressive system. That means the more you earn the less you contribute to running of the state.