Question

In: Economics

why we pay taxes? what are the pros and cons of paying taxes?

why we pay taxes?

what are the pros and cons of paying taxes?

Solutions

Expert Solution

We pay taxes to the government or state for the benefit and facility which the state or government provide us and it is not possible or very costly if any individual wants to take this benefit or facility. For example national defence, public services roads, rails or park etc.

The benefit of the paying tax.

By paying tax we get the national defence which is not possible by the individual independently.

By paying tax we get the benefits more than what we pay.

By paying tax we helps our nation to develop.

With the imposition of taxes on the wealthy people and giving subsidy to the poor, it reduces the inequality among the people.

Disadvantage of paying taxes.

Some people pay more taxes while some poor people pay very less or no taxes while both get the same facility of national defence and the public facility.

It is not necessary that the person who pay more taxes get more benefit in the proportion of paying taxes. So those who pay more taxes think tax is not good for them because they receive less what they pay for.


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