We work to earn a living. We aim to get promoted and obtain higher salary because we want to finance our own necessities as well as our family’s; and if the amount of cash we get is enough to pay for leisure, to finance our vacation.
Despite our hard work to acquire a bigger amount of salary, there is always something that goes up together with our salary. Every month or year, a considerable portion of our earnings is slashed off to be remitted to the government- and this is what we call “taxes”.
Taxes are viewed differently by individuals. The government perceives it as something essential to the country’s needs. Meanwhile, taxpayers have varied perceptions over paying taxes; although most would succumb that it is burdensome in some ways.
How about you, do you have a positive notion over taxes?
Jeffrey Fleurinor, CPA, wants to educate you what our taxes are for and why everyone of us should pay them.
Taxes pay for what we get for free.
Surely, you already know that the taxes you pay to the government are used to finance public utilities. Taxation is the primary method of the federal, state and local government to earn revenues.
Although we might think that public buildings, educational institutions, highways, rail roads, road signs and service from public employees are given for free, they are not. We pay these ‘freebies’ through paying our taxes.
Government will cease to exist without taxes.
Taxation is the lifeblood of the country. Just like us, human beings, whose hearts beat and continuously live because of the blood inside our bodies; our country’s government operates because of the taxes we pay.
Imagine if our body will not anymore produce enough blood, what will happen? There will be a big probability that we will die if we lack blood supply. Consequently, without enough funds to finance infrastructure and government services gained from the people’s taxes, our government will struggle to survive if we will not pay enough.
Taxes help in equalizing economic status of citizens.
Among the purposes of taxes is to redistribute wealth. Taxation schemes applied in our jurisdiction are both regressive and progressive.
Generally, federal taxes are progressive. Progressive taxation is applied in income and estate taxes- the larger the value of your earnings of estate is, the bigger tax you shall pay.
Through this taxation method, poverty and inequality are ironed out in the society.
We will be penalized for not paying taxes.
The most important information you should remember from this article is- if you do not file your tax return, you would be penalized.
Most clients of Accounting and Tax Services in Georgia inquire, “Will we get imprisoned by not paying taxes?” Generally, no. But if you commit tax fraud, you will.
We are required to file our returns on a specific date. If we fail to do it, possible scenarios would include:
- We pay penalty fee/fine.
- We will receive notices from the Internal Revenue Service office.
- We might receive summons.
- Our properties may get forfeited.
Yes, paying taxes is burdensome; but we must never forget that in one way or another, we still benefit from it.