Uses of Tax Rates.
Taxes are the involuntary money that individuals have to pay to the government for the developments of the country.
Taxes are always considered as one of the greatest ways in which any government gets its money from taxes are highly protected by the governments since they are the major source of income for the government if you can read more on the J. Otis MItchell Co.
In every activity that individuals engage in that is resulting to income is always taxed this might be in a companies, employment and business, also when we are buying products they always have an additional cost of tax from the original sale price such as while buying a car or a cloth in the shop.
It is important to note that not all entities pay taxes, this depends on the activities they are being involved in in most cases it is the NGOs that are doing the humanitarian work, some companies such as in the medical and food production sector, the reason why they are exempted from paying tax is due to the services that they provide to the citizens are based on helping them rather than making profits.
There are a lot of methods used by different countries to collect the taxes this are such as PAYE which means pay as you earn and others, the aim of his taxation methods is to control the amount each individual pay and also ensures that others pay more percentage than others depending on the method used and one can ask more Tax Questions.
After the taxes are collected they are used in many used by the government to ensure development of the country some of the uses of tax are as follows.
Subsidies, this is where the government uses the tax to pay a particular percentage of the money for the goods that individuals consume so that they are affordable to them, this is usually mostly done to the food staffs.
Development projects, this is where the government uses the money to do projects that are aimed at benefiting the citizens of the country, some of the common development projects the government does are such as; construction of public schools, road construction and maintenance, and others.
Educational supports, this is where the government uses the taxes to pay some amount to the schools so that the public schools can be cheap for all individuals in the country.
Payment of the state workers, the government have to pay those working under it this are staffs such as; the police, military, and other administrators.
The government can also use the money collected to help the needy people, this might be people in the country or outside, this tax can also be used for charity an example is a calamity that have affected a neighboring country and it helps in the recovery of the affected people.
When individuals fail to pay the taxes they are arrested or given a monetary fines to pay this is because tax failure to pay is a crime.
The government has to inform the citizens about the amount that was collected from the tax and how it was utilized thus accounted.
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