1 Why do we pay taxes?
One of the significant reasons we pay tax is because various people are a part of the government such as executives, judges, legislators, etc. who are given their salaries from the taxes that people give. There are a lot of programs that the government runs for people for making roads, education, etc. all of it is done through the taxes they receive.
2 Tax is a price we pay for civilization
Various people consider paying tax as a burden because they pay tax in almost everything they purchase or earn. For example, they pay it from the income they earn plus they pay sales tax for nearly every item they buy, pay property tax if you own a property and at many other places. But, it is a civil duty and should be considered as a payment for civilization.
3 What if someone does not pay tax?
Paying tax is a duty of every citizen, plus it is also the demand as per the law. There is a government agency who takes care of the taxes and its usage; it is called The Internal Revenue Service (IRS). This agency sees if everyone is paying taxes timely or not as if you do not pay the tax then they can lay penalties on you in the form of fine or you might end up going to prison.
4 How is the money used?
This is a question that comes to everyone's mind that how is the tax money used? It foes to various places and used in numerous ways:
- Helps build the nation: There is a cost involved in running the country, and it is through the tax that the government performs all the civil operations. Income tax is said to be the most significant source of running the country. Therefore, without an income tax, the growth of a nation is not possible.
- Welfare Schemes: Every country has an array of welfare schemes related to education, home loan, pension, and various others to help different sectors of society. By giving income tax, you perform a vital role in the completion of these schemes.
- Improved Healthcare and education: A tremendous amount of money is used for improvising the healthcare system of the country with the income tax. There are government hospitals that provide medical services free of charge; all this is possible because of the money paid by us. Also, the money is spent on defense, military services, army, navy, police, and fire-fighting departments.
5 Does the taxpaying amount remain the same?
Every year there is a budget that comes which decides how much tax do you need to pay as per your income. It usually differs every year; you can pay the amount looking at the percentage of tax you are required to pay as per your income.
You get various rebates according to your investments and other things, which can help to lower the amount of tax you need to pay. People who do permanent jobs, their amount is directly deducted by the company and then paid. The IRS compares the number as checks if everyone has paid the right amount of tax.