The Need To Pay Taxes – Who Should Pay Taxes?


Every person has its own responsibility to pay taxes. These are either income tax or sales tax and other types of taxes. Wealthy individuals pay higher rates because they have high amount of income or earnings every year. However, this does not necessarily mean that the rich pay all the taxes. Every individual has his own responsibility and part in the development of the economy.

Should Taxes Be Considered a Burden?

Some experts believed that paying taxes should not be a burden to a person because the taxation system is based on a person’s ability to pay. A person earning a small amount will not be charged with high taxes. This is based on your income or sales, so the more you earn the more taxes you have to pay. There are many reasons why taxes are being asked to certain individuals. People must be reminded that the Federal government uses your taxes to provide health care, social services, national defense and social security. There are three different main categories of taxes;

  • Income tax- This is a progressive tax which means it is subject to increase as the income increases.
  • Real estate tax – This is imposed by the local government to provide schools, roads, hospitals and sewages.
  • Sales tax – This may differ from state to state. The tax contribution goes to the state’s budget.

Aside from these three there are also other types of taxes like the excise tax, capital gain tax, payroll tax and corporate tax. Paying taxes is important as it will contribute to economic progress and development while providing necessary amenities to people.

Where Would Your Taxes Go?

Many people wonder where exactly the taxes they pay go. Your taxes basically fund your country. No government organizations will be able to operate without your taxes and you will find yourself struggling to pay services like education, social benefits and transportation. Your taxes are also used for redistribution of wealth.

Many people have been upset with this idea because this only makes the federal government a charity. Redistribution of wealth is when the taxes paid by the rich and middle class are redistributed to fund programs that will benefit the low-income percentage individuals of the country. Some people have argued whether this is really a fair purpose and if this method is done properly in the country.

Majority of people are not knowledgeable in computing and filing their taxes. The government has developed a system in paying taxes that people who meet the minimum income requirement should understand to be able to file for taxes. Many experts said that people should not think that only the rich are paying all the tax contributions of the country. The government was able to find the best way to ensure that those who qualify for the minimum income is obliged to pay.

The minimum income set by the government for the tax payer may vary from state to state but the difference is just minimal. The tax rates are also subject to change in a certain period of time.

Author Bio: Tom is a tax consultant. He writes a book about the issue saying, the rich pay all the taxes. Many people reacted to the arguments and have provided their opinions about it.