top of page

What are Taxes?

By Srabon Nath

While no one likes to pay taxes, they are very important as they are used to pay

government workers, pay for building the infrastructure of the country, and to fund any public

projects. While it is controversial whether taxes are always used for what they are intended for,

they still are essential to a state’s well-being nonetheless.

There are many different types of taxes. But in simple terms, a certain individual or

organization’s earnings have a varied percentage given to the government based on different

factors. But the main types of taxes that the average citizen would be affected by are income

tax, payroll tax, and sales tax. Income taxes are, as the name suggests, taxes taken away from an

individual’s income. How much is taken away depends on the person’s status and how much

income the person makes. Payroll taxes also affect someone’s earnings. It’s a certain amount of

money that an employer takes from an employee’s pay and gives to the government. Sales

taxes are probably taxes that can be seen daily. Most things that you buy have an extra cost to them that goes to the government instead. This is called the sales tax. Corporate taxes are something the average person would have to deal with and it’s basically a tax that is taken from a

corporation’s profits.

Not paying taxes isn’t a smart decision and can result in serious consequences. Tax

evasion is a federal offense and the IRS will actively take action against you if you commit it. Taxes are generally much lower in the US than in any other country. And while this can be debated, if done correctly, taxes are issued fairly and generally depend on a person’s income level. That means that a millionaire would have to pay more taxes than a middle-class citizen. However,

some very wealthy people are able to get away with not paying great amounts of taxes and it is a

big problem in our system.

5 views0 comments
bottom of page