Why Are Taxes Levied; To Develop Or Protect Certain Industries, Redistribute Income, Influence Personal Spending, Educate The Young Or All Of The Above?


2 Answers

Lakshmipriya Nair Profile
Taxes are sums of money levied by the ruling authority upon people. Everybody has to pay taxes in way or another. They are a necessity because the government uses this money to perform financing services for the common benefit of the citizens. It is not possible to handle these services effectively and efficiently by any other method. Social Security, health care,
national defence and social services such as food stamps and housing etc are some of the services that the federal government fulfil with the help of taxes collected from the people.

Thus it is a necessary evil. Public schools, safe highways, health care, prisons and social services, water and garbage service, police and fire protection etc are all the services that are provided by the government with the help of the taxes levied from the citizens. Taxes are directly proportional to a person's income. Taxes increase with income and decrease with a decrease in income.

Answer Question