In: Accounting
Why are we required to pay income taxes? What do you understand about how your tax is determined? How do you feel about it? Please form an opinion and support your opinion with facts from the readings and any additional on-line research you find credible and pertinent to your position.
We are required to pay income taxes to help the government finance their expenses and to help the government provide us with amenities like safety, law and order, proper governance. Thus we pay taxes so as to enable the government to provide a host of facilities to us as citizens. Some of the facilities that government provides to citizens are roads, street lighting, policing etc.
My tax is determined based on my income. My income is taxed in a progressive manner and the amount of tax is determined as per the prescribed tax slabs. A given tax percentage is applied on the basis of my taxable income and the system is progressive which means that as my taxable income increases my average tax rate also increases. I feel quite comfortable with the current tax system and structure. I think it is fair and equitable and the principle that higher earnings should attract higher taxes is just.
To conclude I am of the opinion that as citizens it is our duty to pay income taxes as it through the receipt from income taxes that government is able to provide several facilities to us. The current system of progressive taxation is also based on fair and just principles and I am happy with it.
References:
https://www.taxpolicycenter.org/taxvox/us-tax-system-fair
http://www.ase.tufts.edu/gdae/education_materials/modules/Taxes_in_the_United_States.pdf