is income tax valuable?

Expert Solution

Income tax is a tax that Governments impose on income generated by businesses and individuals within their jurisdiction.

Imcome tax is valuable because of the following reasons:

- It is an important source of revenue of the government through which government generates steady revenues by levying taxes at sources such as salary or other payments..

- The main purpose of taxation is to raise funds for government expenditure.

- According to the IRS(Internal Revenue Service) it is a way for the government to pool some amount of important resouces from the private sector to the public.

- The ability of the government to provide basic safety and community systems with tax revenue is important to maintain the freedoms and basic living standards.

- It supports Governments to pay for programs and services such as welfare schemes, International activities, public infrastructure, public health and education,national defence programs..etc.

- Income tax serves as a tool to the government to monitor the transactions entered in by individuals and companies.

- It also serves as a data to the government to formulate its policies.

ekkarill92 answered 1 year ago

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