On Processes and Outcomes: The Case of Taxation.

 When the process of taxation is friendly to existing taxpayers, it creates room for the widening of the tax base as it favors and elicits enterprise. However, when the process of taxation is unfriendly to existing taxpayers, it limits room for the widening of the tax base. Note that it limits, it does not prevent

When the reason for doing something is a future outcome whose success rate we cannot determine only in numbers, it is important to ensure that the way activities leading to the outcome are done is such that it elicits doing more of the thing(s) which lead to the desired outcome instead of things that give more of the desired outcome very fast.  

Take the example of tax revenues and the practice of taxation.  

Taxation is not an end in itself, rather it is a means to an end. While tax revenues are a finite goal, taxation is infinite- in that it exists forever, for as long as the nation within which it is conducted exists as an independent entity with financial needs. Given the finite nature of tax revenue targets and the infiniteness of taxation as a practice, the success of a tax system cannot be measured based on tax revenues collected in a specific timeframe, for that tax authorities have powers to squeeze whichever amount of money they desire from taxpayers thus reaching targeted revenue numbers.  

To measure strengths of a tax system and the success of tax authorities, therefore, more attention should be paid to how taxation activities are conducted and their resultant effects to the general state of business (how they affect the tax base) than on revenue numbers reached per specific fiscal period. Activities leading to the targeted revenue numbers and the rules and regulations enabling them are the process whereas targeted revenue numbers are the outcome. 

For a tax system to be successful, it must lay a stronger and reliable foundation for the birth and growth of businesses from which more tax revenue will be collected (remember taxation is infinite- not bound by time) with increments in taxable activities than in tax rates.  

When the process of taxation is friendly to existing taxpayers, it creates room for the widening of the tax base as it favors and elicits enterprise. However, when the process of taxation is unfriendly to existing taxpayers, it limits room for the widening of the tax base. Note that it limits, it does not prevent. Where the tax base could have grown by, say 40%, it grows by a margin lower. The favorability of the tax environment, also, cannot be argued only on the fact that taxable activities increase from time to time. The right place to look is always between is and ought to. There, it can be determined whether or not taxable activities are growing by a good margin and whether or not existing enterprises are growing stronger and bigger to contribute more to the basket.  

If taxable activities are increasing by a good margin and existing enterprises are growing stronger and bigger, the work of the tax man is a success even if targeted revenues for that specific period have not been achieved, for the future will give more in tax revenues. On the contrary, if taxable activities remain stagnant while existing enterprises grow weaker and a good number close shop, the tax man is failing at his job even if targeted revenue numbers have been achieved and, maybe, surpassed.   

Taxation is a game of infinity where the goose that lays the golden egg is taken good care of, so it keeps giving- laying golden eggs. In this, process sustains outcome, which makes the former more crucial than the latter.