Most countries around the world utilize the tax system as an effective tool for regulating macroeconomic activity, rather than leaving it as a mere instrument for collecting government revenue. Capitalist systems rely heavily on taxation to finance their main activities, despite lacking other resources. Some countries, most notably the United States, have even expanded their sovereign debt to record levels (40 trillion dollars) without increasing government revenue through their sole tool (taxes). This avoids putting pressure on individual incomes and ensures a decent standard of living for citizens of the world's strongest economy. Furthermore, this policy avoids negatively impacting economic activity, as increasing taxes on the same tax base can create very dangerous economic recessions for countries that follow this policy. Such a recession, known as stagflation, could deprive them of their primary revenue streams. Most countries in the world are working to utilize the tax system as an effective tool for regulating macroeconomic activity, rather than leaving it as a mere tool for collecting government revenue. In Iraq, however, the situation was entirely different. Iraq and its government institutions operate a completely rentier economy, relying solely on oil export revenues to fund the state budget. This is despite Iraq's adoption of a market economy within its 2005 constitution, which stipulates a free market economy. In light of the recent financial crisis, triggered by the previous government's extensive spending under the three-year budget (2023-2025), a cumulative deficit exceeding 75% of the last year's budget, a high level of debt, and the Strait of Hormuz crisis, the Iraqi government imposed taxes and customs duties exceeding 30% on certain products. This was done without considering the negative economic impact on the already unstable Iraqi economy, which is heavily reliant on rentierism. Citizens found themselves facing a severe stagflation crisis, as prices for most basic goods soared while income levels remained stagnant, failing to compensate for the price hikes. This led to a decline in consumer demand, leaving policymakers with a dire economic situation that resulted in widespread stagflation. The dangerous market movement requires the government to intervene quickly to restore the situation to its previous state by halting the implementation of the new tax decision to ensure the financial and economic stability of the Iraqi citizen in light of the critical circumstances the region is going through.