Year in year out, around tax season people scramble to file their tax returns. Any person living in the United States earning an income is taxed, when you buy something you are taxed, and even when you start a business you are taxed involuntarily.
What Are taxes?
Taxes are fees imposed on individuals or businesses by a government entity. The income generated from the tax is normally used to finance all government activities. Most countries have independent agencies that are responsible for collecting taxes. In the United States, we have the Internal Revenue Service (IRS).
There are different types of taxes paid to the IRS:
- Tariff— this is a tax imposed on all imported goods such as cellphones, cars, etc.
- Estate tax— a fair market value of property in a person’s estate at the time of death. So when you die you are still taxed!
- Income Tax— a percentage of your total income per year is taxed.
- Corporate Tax— a percentage paid by all businesses.
- Sales Tax— this is a tax imposed on certain goods that you buy.
- Property Tax—a tax levied on your real estate property.
Have you ever wondered what tax is used for? Most people do. Here is the answer. Tax income is used to fund a variety of things, from fixing roads to paying public servants such as police officers, teachers, healthcare workers, and other government activities. Tax is also used for the betterment of the economy. So when you pay your tax you are making a huge difference.
Without collecting taxes most government activities will come to a standstill. Many people will lose their jobs as well, as there are many corporations that have hired thousands of employees that are servicing only the US government. Hospitals, schools, army, and law enforcement agencies will have to close down as well. So next time when you pay your tax, always remember that it is the right thing to do. Your tax saves lives, builds roads, and saves the country from falling into anarchy. What are you waiting for? Pay your taxes today!