Tax – Both Burden And Gain

Imagine you earning millions of dollars annually and not contributing a dime of it to the government. That would potentially translate to a huge loss to the government. It is our duty to ensure that along with our earnings, we also contribute a part of our earnings to the government. And this is where tax levied on a person comes in very handy. Unless one wants to view it in a different manner, taxes are enforced upon a person and they are not voluntary. More importantly, these taxes are important contributions to the government.

Taxes are levied through the following terms:

Income Tax – A percentage deduction on your monthly or annual wages. For example, if your annual salary is $20,000, you would need to pay $1000 as income tax to the government at the rate of 5%.

· Sales Tax – In case, you buy a Lamborghini from a car dealer, apart from the product price of the car, you would need to pay sales tax.

· Property Tax – If you own a property anywhere in the USA, you would need to pay Property Tax on the owned property. The Property Tax Rates are slightly different across states, but the concept remains the same.

· Social Security and Medicare Tax – Just so that the local government can help in terms of your need (unemployment, disability), one needs to to pay Social Security Taxes to the government.

The amounts of all these taxes add up to a relatively big number. When you earn $3,000 a month, you may even have to shell out $700-$800 in taxes to the government. If we thought that we should not pay these taxes to the government, then we are wrong as it potentially has the rather serious drawback of being charged with tax evasion.

Consider that as a lawful citizen of the country, if your fail to pay your taxes, then you are breaking the law. After all, the laws are made for the benefit of the people. And so are taxes. Admittedly, you may not agree with how the tax dollars are distributed; however it is those same tax dollars that ensure that the basic necessities of its citizens are met. They allow, the communities in which we live to either flourish or become dilapidated which is unfortunately dependent on how much is paid in taxes by any given community.

Who does not want more parks, more leisure malls, more schools , much better public transport system? And if we want it to be developed in our community, it is our duty to pay the taxes. A lot of countries (developed and developing) are employing taxes as a good tool to ensure that they get benefits to the citizens. And in all probabilities, if you find that if a country’s citizens are lamenting the lack of basic infrastructure, you can safely assume that there would have been a lot of tax evaders who did not pay the taxes on time.

If you pay taxes today, you would gain tomorrow…

Property Tax