Around the middle of spring, you’ll begin to hear the moans and groans of working adults needing tax help and complaining about income taxes. Sure, we all know that it’s legally required, but do we really know why a substantial chunk of our income is being handed over to the government? Regardless of whether we give a nod of approval or think it is totally absurd, understanding the true purpose of taxation is necessary for all taxpayers. Why do we pay taxes? There are plenty of reasons. From funding retirement programs to paying government workers, taxes help keep our country running. Continue reading below to find out more about why we pay taxes to the government. Why do we pay taxes? The simplest reason is that the municipal, state, and national governments implement tax laws, and taxpayers’ money pays for government services of all kinds. These governments are comprised of a few parts: the legislators (those who make laws), executives (those who enforce laws), judges (those who decipher laws), and many others. The money received from taxes pays individuals who work for the government, as well as for public programs like education and infrastructure like roads. Although a legal requirement, paying taxes is also considered a civic duty. If you neglect to pay, the mediating body that oversees taxes (the Internal Revenue Service, or IRS) will require that you do so — otherwise, you might face penalties such as hefty fines or jail time. Taxes come in a number of forms. Income tax is the amount you pay when working at a job. Depending on your income, a percentage of that money is withheld, meaning it’s removed from your paycheck and sent to the government. When you purchase items at a store, a sales tax is typically added to the price. Sales tax is a percentage of the cost of the good charged at the store. Owning property also requires you to pay property taxes on its assessed value.
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