Is Income tax expense or a profit-sharing?

Is Income tax expense or a profit-sharing?

Expert Solution

Answer:

It is to be treated as profit-sharing with the government. You will be part of the cycle of nation-building. You can use facilities such as better highways, etc., which will improve your life. You will be part of tomorrow's cycle to build a new advanced country for the next generations. Primary considerations are as follows for treating Income Tax as profit sharing with governments:

1. Creating Public infrastructure

In most parts of the country, transportation infrastructure, governmental institutions, public places, intelligent cities, etc are now being built in full swing. The government will finance infrastructure programs by means of taxes paid by taxpayers.

2. Welfare schemes

The government implements and frequently introduces new public protection programs to support people from every sector of society, ranging from health, education, housing, homelessness to food programmes. Revenue tax is one of the key sources of collection of funds for these schemes. Importantly we see how governments across the globe are spending taxpayers money to combat COVID-19.

3. Scientific research and defence:

Daily funding is needed for space missions and scientific developments. Likewise, tax money allows the Government to provide sufficient funds to maintain and develop our country's defence capacities.

4. Some of the other ways in which the government uses the tax money are to ensure the provision of basic services such as electricity, water, waste management, law enforcement and so forth.

Tax should therefore not be considered as costs.

ekkarill92 answered 2 years ago

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Is Income tax expense or a profit-sharing?

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