Why do we have a tax system?

Expert Solution

Every country needs to be lead by a government for many reasons like security, peace and well being. While some one monitors by giving so many benefits to their people, they need some source of funds to function and be existent. Contributions from people will not be done by everyone and it can not be forced from people with low income for contributing to government. Some rich people though they have money they might not like to contribute. How can a government collect money from people who are capable of contributing. Then the concept of taxes arose which gave a solution that only people who enjoy luxuries and good income will get to pay tax. Taxes are the important and main source of revenue for any economy. The government will use this funds to build public parks, maintain hygiene and provide many public facilities. This is one one of the way to reduce the income variations of the people.

ekkarill92 answered 1 year ago

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