Many people would prefer not to pay taxes if they can get away with it. This is because people in this category see taxes as a punishment. Some people even have the view that the taxes they pay are not always used for the benefit of the society. Now, these views are inaccurate and do not reflect the true position. Taxes are vital sources of revenue for state, local and federal governments. Taxes are used to provide social services and this why an effective taxation policy should be encouraged. Below are some of the taxes in many civilized societies.
Pay As You Earn (PAYE)
This tax is paid by salary earners and it is a huge source of revenue for state and federal. The PAYE is deducted by the employer and remitted to the account of the relevant governments agencies.
Value Added Tax (VAT)
This tax is a money spinner for the government. In most countries, VAT is just 5% but this small percentage adds up to a lot of money. This is because Value Added Tax is charged on most goods and services and the cash is remitted to the revenue authorities.
This tax is charged on certain corporate transactions and it is an important source of revenue. You have invested in the shares of public companies, for instance, and these firms pay you dividends. Every time you get paid dividends, the government takes some of your cash in the form of withholding taxes. You also pay withholding taxes when you get interest from your savings bank account.
Private and public companies usually pay taxes both local and federal taxes. These taxes are charged based on the reported turnover and income of the company in question. The percentage charged may vary from one state to another but this tax brings in huge revenues to both state and federal governments accounts.
Apart from the ones above, the Inland Revenue Service charges other taxes which help boost revenue and create fund for many government projects. These include property tax, inheritance tax, sales tax and stamp duties. With so many taxes to worry about, it is not a surprise that many people need help filing tax returns correctly. This is where Myles Haverluck tax experts come into the picture. These experts will help you deal all the complicated paperwork that goes with taxation. They will also ensure you file your tax returns at the right time.
Make it a point to pay your taxes willingly and happily because the money is used in the interest of the society. In case you find tax matters confusing, consult an expert to make things clear to you.