Question

3. What are the advantages and disadvantages, if any, of paying taxes. What happens if a person does not pay taxes and what direct and indirect consequences does it have for the country's economy and for the family unit?

Answer 1

Many Individuals took tax as a burden But paying taxes helps the nation to grow and by paying taxes, You are ensuring your support in the growth of your nation.

At Personal level also, It helps in VISA applications, Loan approvals, and can be shown as your Income proof.

Further, the Government can impose civil liability on the individual for not paying the taxes.

At the Country's level, The tax paid by us collectively helps the government to spend the budget on our growth in the form of Country's growth. It helps to boost economy of the country.

Public Infrastructures, Health Programmes, Reducing unequal distribution of income, Defence projects, etc. are some of the major projects which are mainly supported by the taxes.

Disadvantages of Paying Taxes

It decreases your spending capacity because it takes away money from you.

It increases the business expense which makes it more difficult to achieve profit.

But if citizens of a country do not pay taxes, It may have a major effect on the country's economy. The overall economy will go down and growth will become very slow.

I hope it will help you in the study.

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