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Why do we pay taxes
Why do we pay taxes is one of the foremost questions that comes to the mind of tax payers at the end of each financial year. For almost all the citizens of a country pay taxes in one form or the other to help the nation grow. Though, a number of tax payers think that government is stealing their hard earned money in the form of taxes but they overlook the services and privileges that the government provides to its citizens (including taxpayers) in return.
We often wish for better infrastructure, public security, health & other general services and job opportunities to improve our earnings and thus lifestyle, which is virtually impossible if we don’t pay our share of taxes to the government. Our taxes come back to us in the form of improved roads, bridges, educational institutes, hospitals, water supply, sanitation, government aid, emergency relief funds and many more.
Moreover, we need better security services, both internal and at the border, to live and work in a safe and peaceful environment. These services could not be managed or distributed as efficiently as the government does. For government utilizes the funds gathered in the form of taxes to fulfill basic as well as recreational needs of its citizens, so they could develop themselves in a healthy and supportive environment.
Usually governments impose tax in the form of income tax, sales tax, excise tax, toll tax, recreation tax and so on. Though the tax system varies in different countries, according to their norms and regulations, but it is largely based on the ability to pay of an individual. Who generates more income pays more and who earns less pays fewer taxes. In many countries, a special class that falls below poverty line is exempted from all taxes. Therefore, if we wish better services, opportunities and security from our government, we must pay our share of taxes to ensure better living.