Tax is the primary method of collecting money by governments. It is a part of our social system for hundreds of years. Residents pay a proportion of their income and goods to government for the development of society such as schools and roads. Governments usually fix the amount of tax and most of the time it is relative to the income of the taxpayer. Some people believe that taxes should be high while others want them to be low. No doubt, both sides have their own pros and cons, but in my opinion, taxes should not be too high and must be according to financial resources.
High tax makes the government economically strong. Governments can collect more money for the development of public sectors. This money can be used for the advancement of healthcare, education or transit services. Moreover, authorities can save this money for later, such as in case of disasters or economic crisis. For instance, during the pandemic, COVID 19, many employees got laid off
and at that time the government gave them monthly financial aid. This is only possible if a government is able to save money through higher taxes. However, this is also an extra burden on common people.
High tax means that there is extra hidden costs behind every purchase. It disrupts the budget of low-income families. They cannot contribute to society until their own needs are satisfied. Low tax gives them more freedom to buy their necessities. Also, they can invest their saved money to grow their business. It makes people more independent in financial terms. For example, I want to buy a house, if there is low land transfer and property tax, I can invest more in actual price of the house instead of paying the government. Even though, the government uses this money for public welfare, without fulfillment of basic needs, individuals cannot enjoy other facilities like schools and recreation centers.
In conclusion, tax money returns to its payers in the form of services if governments use it well. It should not be too high to break the financial goals of citizens, but at the same time, it should be enough to provide them appropriate services. Taxes should be deducted on the basis of economic status. It should be low for poor, so they can have some extra pennies for their needs.
Tax
is the primary method of collecting
money
by
governments
. It is a part of our social system for hundreds of years. Residents pay a proportion of their income and
goods
to
government
for the development of society such as schools and roads.
Governments
usually
fix
the amount of
tax
and most of the time it is relative to the income of the taxpayer.
Some
people
believe that
taxes
should be high while others want them to be
low
. No doubt, both sides have their
own
pros and cons,
but
in my opinion,
taxes
should not be too high and
must
be according to
financial
resources.
High
tax
makes
the
government
economically
strong.
Governments
can collect more
money
for the development of public sectors. This
money
can be
used
for the advancement of healthcare, education or transit services.
Moreover
, authorities can save this
money
for later, such as in case of disasters or economic crisis.
For instance
, during the pandemic,
COVID 19
,
many
employees
got
laid
off
and
at that time the
government
gave them monthly
financial
aid. This is
only
possible if a
government
is able to save
money
through higher
taxes
.
However
, this is
also
an extra burden on common
people
.
High
tax
means that there is extra hidden costs behind every
purchase
. It disrupts the budget of low-income families. They cannot contribute to society until their
own
needs
are satisfied
.
Low
tax
gives them more freedom to
buy
their necessities.
Also
, they can invest their saved
money
to grow their business. It
makes
people
more independent in
financial
terms.
For example
, I want to
buy
a
house
, if there is
low
land transfer and property
tax
, I can invest more in actual price of the
house
instead
of paying the
government
.
Even though
, the
government
uses
this
money
for public welfare, without fulfillment of basic needs, individuals cannot enjoy other facilities like schools and recreation centers.
In conclusion
,
tax
money
returns to its payers in the form of services if
governments
use
it well. It should not be too high to break the
financial
goals of citizens,
but
at the same time, it should be
enough
to provide them appropriate services.
Taxes
should
be deducted
on the basis of economic status. It should be
low
for poor,
so
they can have
some
extra pennies for their needs.