- Government Employee Paying Taxes
- Their salary comes from tax revenue, meaning they are indirectly funded by the taxpayers.
- They contribute to the economy through their taxes and spending.
- However, they do not generate new money into the economy; they circulate existing money.
- Foreign Income Earner (Tax-Free) Spending Locally
- This person brings new foreign currency into the country.
- Even if they don’t pay income tax, they contribute through indirect taxes (VAT, sales tax, etc.) when spending on goods and services.
- Their spending increases demand, supports businesses, and creates jobs.
Who Helps the Economy More?
- The foreign income earner helps more because they bring new money into the system rather than just redistributing tax revenue.
- Their spending boosts local businesses, increases employment, and contributes to economic growth.
- Even though they don’t pay income tax, the government benefits from the multiplier effect of their spending.
Conclusion: If the goal is to grow the economy, attracting more foreign currency earners (like freelancers, remote workers, and exporters) is more beneficial than relying solely on government employees.
