Our tax is a sort of income of the government by means of charges enforced on merchandises, services, general commodities and income of its citizens. Funding government establishments and projects which are geared towards developing a country, and other similar purposes is the main purpose of our tax.
Without funding, a government would certainly be very hopeless in coping up with the different needs of a society. Taxes help the government to build roads, schools, hospital, fire stations and the such. Despite this, there are still many people who despise paying taxes and some even try to find ways to avoid paying them and are called tax evaders.
Many salaried workers who are earning less than those who are corporately rich complain that they are paying more tax, thus a large number of them work in underground economies, risking themselves of being arrested and punished by the law.
People become frustrated because of the fewer and costly public services which is worsened due to high taxes. This is even ignited with poor health care system and educational system.
However, it is important for us to know that the government uses tax to provide social security, public health benefits, public education, maintain public peace and order, funding for national defense, for paying government debt and for overseas aid.
Taxes are used to provide public services and goods. At the same time, the government also provides employment opportunities for its citizen. Public services like public schools, public hospital and police stations will definitely provide jobs to teachers, doctors, dentists and nurses, and to policemen.
Not only are taxes used for provision of public services and goods but it is also used to redistribute wealth to the unfortunate. Take for example the social welfare system. The government provides financial aids to those in need and have certain benefits to help alleviate their sufferings.
It could also be used to manipulate the economy. Government usually imposes higher taxes rates on imported good and less tax rates on exported commodities to help local producers earn more. Taxes can also be used to control the quantity of product that might flood the market and cause terrible losses to local manufacturers.
So next time when it’s time to pay your tax, don’t hesitate and feel like your being forced to pay something that you shouldn’t need to pay. Just think of what your tax can do for you and of course for others.
Looking for competent accountants orange county? or maybe an anaheim cpa who can help you and your company’s financial matters. There are many accountants in Orange County but only few of them are capable of helping a company or an individual sort out their financial books to be able to pay the right amount of tax.