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Why Do We Need to Pay Our Taxes? by Sean Saunders





Article Author Biography
Why Do We Need to Pay Our Taxes? by
Article Posted: 07/15/2012
Article Views: 152
Articles Written: 125
Word Count: 521
Article Votes: 0
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Why Do We Need to Pay Our Taxes?


 
Business,Business News,Tax
Tax is a fee that the government charges for a product or service. There are two classifications of tax, indirect and direct tax. If tax is levied from the income of an individual or a corporation it is known as direct tax. On the other hand if tax is charged on the price for a product or service it is considered to be an indirect tax. The primary purpose of collecting tax is to funding the utilities of publicly used resources like street lighting. The funds generated are also used to build infrastructures. Tax collection also pays for the salaries of the government employees.

Everyday when we get out of the house we use roads. These roads are maintained by the government. Where do they get the funds for their expenses in maintaining the roads for public safety also for paying the people to maintain its cleanliness? Yes, you’re right it came from the taxpayer’s money. That is why it is important for the government to collect taxes to have revenue in order to do the projects needed for economy to progress.

The disadvantage of taxation is mostly people based. In the wrong hands especially the corrupt ones, the funds of the government and the money of the people will not be used properly and some of it will go to the pockets of the politicians who are disgustingly corrupt. Another disadvantage of taxation is the taxpayer doesn’t really know how much revenue is really generated and whether if it is put to proper use. Also the government is having a hard time monitoring all the tax payers because of their quantity. Other individuals or companies avoid paying taxes because it will get a portion of their income. When they evade paying taxes it can affect the revenue of funds that the government is using to fund certain projects.

The advantage of direct tax is the burden cannot be passed to another person since the collection of the tax is coming directly from the income of the taxpayer. Secondly, the collection of tax from the tax payer is cheaper since the collection will come directly from the taxpayer itself. The government can save time and money in collecting from individuals and companies. Also, there will be less corruption because the government knows who is paying and who is not. It will also be productive, as the economy growth increase, the revenue will also increase thus giving way to a more progressive economy.

As a citizen, we must be responsible enough to know and do our responsibilities as part of the society. We must pay out taxes properly and regularly, reporting tax evaders in order for us to help our community so that our country will progress. Also, let’s fight corruption and report abusive government officials that are stealing the people’s money.

We must help build a stable economy to avoid economic crisis. Let’s pay the tax properly and regularly. If we pay the tax we have properly we will also have peace of mind and gain self-respect.

Related Articles - Tax, Taxes,

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