Question

For this discussion question you are gong to pick a tax that you or someone you know has to pay and do a little research to determine where that tax goes and what it pays for. You can choose any federal, state or local tax (although state or local taxes may be easier). Once you've picked a tax, make a post below and answer the following questions:

What is the tax you picked?

What type of tax is it? (e.g. excise, percentage, etc.)

Why does this tax exist and where does the tax revenue go? What does the tax fund? (for this one you might have to do a little research)

Based on what the tax funds, do you think it is a tax we should have? (i.e. do you think the tax revenue should go where it does? somewhere else? should the tax be abolished? etc)

NOTE: In your post please include links to any sources where you found information about the tax you are looking at (county web pages, etc.)

Answer 1

I picked Income tax paid by the people of USA which comes under federal income tax department .

This tax exist because the United States government needs a lot of money in order to function and fund its numerous foreign and domestic programs. Also taxes help at the boom period of businesses cycle . It also helps to create the demand of money .

The money collected from income taxes goes towards federal education programs , the US military , welfare programs and various agencies such as the E PA and FDA. Both individuals and companies are required to remit a portion of their income to the federal government on an annual basis . When politicians decide that more money is needed for certain programs , they often raise income taxes to pay for them.

Abolition of income tax on individuals will give better spending power, creating additional demand for production, leading to more employment generation. No income tax means No tax evasion. Savings will increase . abolition of income tax will allow investment in productive purposes. No income tax will certainly create greater incentive to work. Corruption at times is born out of socio economic compulsions and will certainly get minimised as no income tax is payable. Every human being by nature wants to lead a peaceful life and believes in bringing up his family well. In the absence of income tax, unfair practises, Corruption and ways to funds savings in tax will get eliminated.