The prosperity of a large portion of the world's countries, including Latvia, is based on the businesses operating within them, which both employ people and pay taxes. Politicians do not generate tax revenue; they merely redistribute it – for health, education, security, culture, roads, and much more. Fewer businesses mean less money to redistribute.

Priority – ensuring that taxes exist

Public attention is often fixed on the speeches and conclusions of those who redistribute taxes, because everyone needs funds and there is never enough to go around. The clamour of the redistribution market often drowns out and neglects those who, through their work over the last 30 years and during the current turbulent times, generate the money that flows into the state coffers in the form of taxes. It is precisely the businesses that produce goods and services for both domestic and foreign markets that are the source of 'money' for taxes. Institutions often take pride in the amount of taxes they have paid, yet in essence, they first receive money from taxes paid by businesses, a portion of which they then pay in taxes again. Consumption taxes – excise and value-added tax – arise because businesses pay salaries to their employees and pay the taxes that the state redistributes. Subsequently, when receiving a pension, citizens can go and purchase the goods and services they need, and there is tax revenue once again. This algorithm of national prosperity must not be ignored, as businesses are the lifeblood of the state! Namely, the priority is that tax revenue must exist in the first place, and only then should redistribution take place.

Number of businesses shrinking for the seventh year running

For the seventh year, Latvia is being ravaged by an epidemic of business liquidations, and it is currently unclear when this blight will subside. We have already written that the number of people in Latvia continues to decline. Insects, birds, and animals do not need businesses. Data from SIA Lursoft starkly proves that since 2016, more businesses have been liquidated in Latvia than have been registered, and thus the net balance is negative. In the first six months of this year, 5,799 businesses have already been liquidated, while only 4,305 new ones have been registered. (...)