What Is The Purpose Of Income Taxes ?
A tax is a charge a citizen pays to support the government, or a governing authority of the country and state. Tax is mandatory for everyone in the country, as opposed to voluntary disbursement or donations in cash and kind. In fact, failure to pay taxes is illegal and liable to criminal charges or civil punishments. |
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The money incurred as income tax is put to use in various segments to improve the life conditions of the general public in the country. The government of the United States uses fifty-three percent of income taxes for Social Security, armed forces, and municipal and law enforcement. Other purpose of collecting taxes is to protect property, promote public works, support health care, betterment of education systems, pensions, unemployment benefits and other welfare services. Taxes ensure a smooth operation of the government. It also pays for the energy and water systems of the country.
Every year, the government has a budget for various activities relating to improvements in public life. These projects are funded by the money collected through income taxes and other kinds of taxes from the people living in the country. Income tax also helps in providing accurate information about earnings of the country's corporate, companies and the citizens. However, this is not a primary purpose of collecting taxes, but a byproduct of the process.
Most people dislike paying taxes for various reasons like the tedious calculations involved to determine the exact amount payable to the government. But, when one considers the benefits which results from paying taxes, it seems worth all the trouble. Income taxes encourage buying property and houses, as the amount paid in interest for mortgages are deducted from the income taxes.
Whatever the reason, it is every citizen’s duty to pay income tax, and help the government fulfill its vision for the nation.
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