Since time immemorial, taxes are part of human existence. From birth to death, we pay taxes every moment of our lives. What are taxes? Why do we need to pay taxes? Is it possible to get rid of all taxes? Are there ways to reduce taxes?
Tax is payment charged by a country’s government on products, certain services, people’s earnings, or legitimate activities. A government agency is tasked with regular collection of taxes from both native and foreign residents. Depending on a country’s regulations, failure to pay taxes is punishable by law.
There are different kinds of taxes, like income tax, value added tax, and sales tax. If you’re from the U.S. and you hire San Diego Hardwood Flooring experts to fix your floor, you’ll be paying services tax. Try to find jobs near you, get hired, and you’ll be deducted an income tax.
If you’re a web developer purchasing dreamweaver templates online or purchasing gadgets via nomorerack using your credit card, you will be charged with sales tax. If you’re putting up a flower shop named Flowers Victoria BC, you’ll be charged with business taxes.
Every country is run by some form of government. Obviously, the government needs money to make all operations and services run seamlessly and continuously. Where then does the government get all the money? It’s from our taxes. In essence, our taxes are the lifeblood of our government. Our taxes are spent to build public schools, pay all government officials and employees, install street lighting, maintain public roads, and provide protection to make our country safe and peaceful.
What will happen if all of us stop paying taxes? Aside from possibly getting ourselves jailed, the whole country would virtually shut down. Imagine a country without an effective police or military force. The whole place would be in total anarchy.
Throughout history, there were unsuccessful attempts to abolish taxes through the establishment of alternative forms of government or society. Economic giants, like the U.S., have proven that efficient collection and wise use of people’s money will lead to economic growth. After all, paying constituents deserve the best possible service its government can give.
There are ways to reduce tax. Depending on your country’s laws, you may apply for tax exemption. According to Wikipedia, tax exemption may be granted “…to certain organizations, persons, income, property or other items taxable under the system.” The qualified taxpayer may have either a tax break or a reduced tax rate. You may also apply for tax shelter which is a method of reducing taxable income. Each country may have other programs to give taxpayers the opportunity to reduce taxes.
Due to lack of viable alternatives, taxes are here to stay for now. The good news is there are ways to reduce tax so that we have more money to spend for our family needs. To know more about taxes, click here for more information. To view source of your country’s taxes, just visit site the tax collecting agency of your country.