To pay tax is considered as the duty of every citizen. One who doesn’t pay tax is not considered as a good citizen of the country in the eyes of law and government. But many people seem confused about why are they paying so much tax? Where does their money go? To stay updated and aware of the duties one has as a citizen is important. Along with that a lot of people do not pay their taxes on time and go under tax debt. When people don’t pay the tax, this increases the burden on them, and they look for debt relief. The process becomes complicated for them and they require help. A citizen needs to know the significance of tax.
The requirement of Law:
According to law, every citizen of the country must pay taxes. Not payingtax is considered as a crime. There are certain penalties in the law for people who don’t pay their taxes. The penalties vary from country to country. The penalties also depend on the amount of tax due on you. As in the United States, you may pay fines or go to jail for not paying the tax.
Source of Internal revenue:
Tax is a source of internal revenue through which the financial system of the country runs. The tax you pay is used for your welfare. There are different facilities that the government provides to its citizen using tax money. There are bodies which regulate the process of taxation. In US Internal revenue services or IRS regulates the process of taxation and makes sure that the system runs smoothly.
Source to provide facilities to the citizens:
All the facilities that the government provides to the citizens come from tax money. Everything that a citizen cherish he/she pays for it. All the public sector hospitals, educational institutes and all other institutions run on the taxes paid by the citizens. So, to keep the system going it is important to pay taxes on time. So, you can cherish all the perks of being a taxpayer. The government introduces different welfare schemes for the people. It creates ease for people in many ways and they become able to have better facilities.
Tax money builds the nation:
To build a strong nation it is very important to have responsible citizens. The citizens who care for the country always pay their tax. To have a sustainable system the state needs to have money reserves to use them for citizens. Tax is a fundamental cost to run the whole country. Tax money is consumed to perform civil operations for the large or even small populations. To keep the system going tax is important. Otherwise, the whole system can collapse due to financial instability.
Civic Obligation:
A person who doesn’t pay tax on time is not considered a respectful citizen of the country. Along with the government, the fellow countrymen don’t consider you a good or responsible citizen if you are not a tax filer.