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Currently in India there are many scams running rampant which involve illegal use of money by politicians. This is money which comes from taxes paid by the Indian people. Why should one pay such taxes to the Indian government if the politicians who use it have no accountability?

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    Because people with guns will come and use violence on you if you try to deny their extortion. – SoylentGray May 22 '14 at 19:30
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Let's assume that X rupees of the taxes are misused for shady purposes, and (all_taxes-X) rupees of tax money goes to good purposes.

If you want to reduce X, is not paying taxes really a good way to achieve that goal? Actually doing it on scale (for large groups of people) generally means in practice that a noticeable fraction of unpaid taxes gets spent for funding the tax-evasion schemes and bribing various officials, thus actually increasing X.

Also, generally if funding for kleptocratic regimes dries up, then they typically still serve themselves first - the historical behavior of dictatorships all around the world during severe economic crises shows that. They would fill their wallets anyways, not decreasing that X, but decreased tax income would decrease the funds that's spent on the actual neccessities of society.

I would say that the same legal mechanisms, people habits and social norms that facilitate politic scams also facilitate tax evasion, and the things that restrict politic scams also restrict tax evasion. If tax evasion is rampant, then actually the same rich magnates and politicians will gain huge amounts through tax "optimization", but it will be much harder for ordinary people to evade taxes in the same proportion.

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