The Savings Allocation Principle

The amounts paid as taxes mainly affect the savings capacity of the affected taxpayers. In other words, if the tax pressure rises to a level that exceeds the savings capacity, it is expected that there will come a time when a taxpayer no longer complies with his tax obligations, forcing him to enter a "fiscal snowball", a situation where, in the best scenario, he will subscribe to successive payment plans for the tax debts incurred until completely cease the debt based on the immensity of the debt based on their income.

That is, the optimal tax pressure operates on the surpluses that would otherwise go to savings. From this it follows that a tax burden that goes beyond these surpluses is doomed to failure, since even those who in good faith want to comply with it, will not be able to do so without dispensing with making other payments that are necessary, unnecessarily increasing the costs of collection and greatly affecting social dissatisfaction. Keep in mind that humans do not have a choice about whether or not to feed, and in extreme cases this activity will clearly be prioritized over any imposed load. In other words, if an individual is forced between fulfilling his tax obligations and paying for his basic needs, he will understandably always choose the latter.

This and other principles are available in the book Principios de Administración Tributaria published by Thomson Reuters - La Ley.