Revenue for the government is needed to run the country. They are acquired from the citizens of the country. In return, the citizens get services from the government.
Citizens work in their respective companies or own businesses and get taxed. The tax rates vary depending on the income that you have. Usually, the higher your income, the higher the taxes that you’ll have to pay.
So if you will remove taxes, most probably the country will experience downturns. There are lots of projects that the government needs to do such as the following:
- Governance: For the government to run their respective projects successfully, lots of money is needed. There are infrastructures to be made and assistance to people that needs to be distributed. Not only that but there are also funds that the other sectors of the government need such as the military, transport, economic growth, etc.
- Healthcare: It is one of the most important sectors of society. Without a good healthcare system, the country will collapse especially when an epidemic strikes. The Healthcare system includes social security, medical research, and emergencies.
- Education: Great generations start with a decent education. The government must be equipped with a sufficient budget to sustain the salaries of highly qualified teachers. Also, infrastructures for schools and universities are the ones to spend the taxes on.
Moreover, taxes can have an impact on a nation’s economic growth. The contribution of taxes to GDP is superb which is essential for job opportunities, better standard of living, etc.
Impact of Tax on Enterprises
For a business to be successful, the country must be well-developed. It will attract investors which will increase the cash flow in the country. This will result in a healthier economy that can surely improve the standard of living in the country.
It is also essential as business owners can loan money from the government if they needed to. This will give more opportunities for the business to grow.
Conclusion
Taxing people has been always there since the early times. It keeps a country running because of the financial support that it is getting from its citizen.
So as long as there is taxation, the citizens will continue the full benefits of the government. It is better to keep your taxes updated to avoid problems as tax evasion is a serious offense.