Taxes- Fundamentals and Basics

A Tax is an enforced contribution which helps the government in various services such schools, utilities, public health care units and laying of roads. Taxes, which are levied by various entities of government, are present in different forms. The most common among them are indirect and direct taxes. Direct taxes are those that are paid to government directly through income taxes which are paid yearly. Indirect taxes refer to those which come from purchase of goods from retail revenues. There are different rates of taxation fixed by the Federal government; but the counties and states can fix their own tax rates depending on the various public works that need to be done in the state.

The history of taxation takes us to prehistoric times. It’s known that the ancient Egyptians were the first to introduce a tax system .Livestock and goods were the modes of tax as currency was not widely used. Tax were given based on their type of work and individuals who were unable or refused to pay, were punished. References to taxes also date back to European history where every product from window to even bread was taxed. These taxes helped the soldiers in gaining victory in wars by affording the expenses spent to buy weapons.

Taxes are always paid in the form of percentage though there are many other methods followed. These percentages vary according to the entity that decides them. Indirect taxes reach the government more quickly as people pay the tax along with the purchase of the goods. The retailer, on calculating the amount of tax payable to state and federal government, pays them to appropriate office of revenue. Taxes related to real estates and other property is paid on yearly basis. Individuals and retailers who don’t pay taxes are viable for imprisonment and stiff fines by the government.

Taxes have proven to be an important part in the history of the world. There is almost no country in the world that doesn’t have a contention with their current tax system’s and when this controversy over tax system occurs ,the people protest saying that the tax rate is very high or question as to whether these taxes are utilized properly. As a matter of fact, it was the taxation of tea which lit the fuse for America in gaining independence. In addition to that, these taxation issues have served to be the most sorted topic for politicians. Whether or not taxes are helpful, large amount of things depend on these tax systems. It is this intricately structured tax system that helps the citizens to get the basic needs provided by the government.

Abhishek Agarwal
http://www.articlesbase.com/taxes-articles/taxes-fundamentals-and-basics-708552.html

9 thoughts on “Taxes- Fundamentals and Basics
  1. In a capitalist society, why aren't high schools tasked with teaching basics such as interest and investment?..and the true cost of getting a tax refund vs keeping your money throughout the year by adding deductions?

    Is anyone else amazed at how little US teens are educated on the fundamentals of household economics?

    Anyone amazed at how many Americans view receiving a large tax refund as a good thing?

  2. In governemnt indoctrination camps.. oh, I mean ‘schools'; letting the inmates know how the prison really works wouldn’t exactly be in their best interests.References :

  3. They don’t even teach American history! Have you seen some of the stuff on here that teens write and you are amazed that they don’t know basic economics?! These are people who don’t even know the three branches of government! C’mon!

    And not all teachers are liberals! I taught for more than 15 years before my son was born and am getting ready to go back.References :

  4. We are not a capitalist nation. We continue to create dependency on the system through Welfare, extended welfare, unemployment, extended unemployment, medi-cal, cal works, Healthy Families,affirmative action, and all the other free for all programs that it makes life easier to be on welfare than to have a full time job.
    As a teacher, I see so many families on government assistance that live better lives, dress better than I, drive better cars and kids have more "toys". The system pays well.References :

  5. The used to have economics classes in High School. Things change, I guess some teachers didn’t think the students were smart enough to handle it.References :

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