Did you know that aside from the income tax you file and pay every year, you are actually paying extra taxes on almost all the items you buy on a regular basis? Taxes are not only levied on the revenues you earn but also on all goods and services which you regularly purchase and enjoy. Tax could be a huge financial burden. It could slash your net take home pay by a considerable amount. But why do we really have to pay taxes? More than just being a legal responsibility, the following are some of the specific reasons as to why.
Taxes finance the running of all governments
The primary use of taxes is to finance and maintain the operation of any government. The government has no other sources of income aside from the taxes that every citizen contributes. The taxes collected by the government for any year are the funds that will form part the budget that will finance all the government departments or units from the head of state down to the local or community level. If you are familiar with the importance of the presence or existence of a government, that’s already tantamount to the importance of your tax contribution.
Taxes are needed to build public infrastructures
The government which collects taxes spends bulk of this fund in creating or building infrastructures like roads, bridges, parks, schools, etc, for the benefit of its citizens. It’s a principle of group or contributed expenditure. Imagine if the government doesn’t do this for us, every individual or household will have to build a stretch of road or highway in front of his or her property. And that would be costly and close to impossible for most people.
Taxes fund social or government services accorded to all people
When you demand certain services from the government, they won’t have a choice but to accord you with that service because you are paying taxes for them to do so. Some examples of public services include; the provision of utilities like water and electricity supply, processing of the documents you need, providing police or military services, and down to the simple service of collecting your garbage.
Taxes help fuel the economy
The taxes that citizens pay to their government are also used in fueling or trying to improve the economy. If the government spends its budget for the year, several industries benefits from it, several jobs open up, and the flow of money expands. Most governments also invest, or perhaps, promote business activity or investment using the funds collected from taxes.
Taxes are your share in helping the poor or less fortunate citizens
All countries whether the 1st class or third world economies have their own population percentage who are considered as poor or belonging to the poverty line. Of course, the government can’t just ignore them, “dispose”, or drive them away out of the country. As part of its social or humanitarian duty, the government attends and provides for their needs. And these provisions are derived from the taxes that people pay. Taxes are your contribution to the less fortunate individuals and it’s also a way for all the country’s citizens to enjoy social equality.