Wednesday, April 4, 2018

What are Taxes?

Taxes are the tax rates set upon certain services, objects, and types of people, specified by the government. Governing organizations prepare tax rates to properly facilitate their services which can be used as a convenience to everyone. Governments of countries provide services like health care, law and security, education, transportation, and infrastructure to the people of the country.

A picture of government taxes being calculated.
A picture of government taxes being calculated.

Types of Taxes

There are different types of tax rates or taxes. Some of the types of taxes are presented below:

National Taxes - tax rates which are set upon countries are called National Tax Rates or National Taxes.

State Taxes - tax rates which are set upon divisions of countries are called State Tax Rates or State Taxes.

Service Taxes - tax rates which are set upon services are called Service Tax Rates or Service Taxes.

Goods Taxes - tax rates which are set upon commodities or goods are called Goods Tax Rates or Goods Taxes.

Transaction Taxes - tax rates which are set upon transactions of currency are called Transaction Tax Rates or Transaction Taxes.

Income Taxes - tax rates which are set upon income are called Income Tax Rates or Income Taxes.

 

Features of Taxes

Tax rates have features which change as time passes. Some of the features of taxes are presented below:
  • Tax rates are set up as a small fee to facilitate secure trade and exchange.
  • Taxes can be paid per trade exchange or any time, based on the type of tax being paid.
  • Taxes are essential for the provision of facilities which make everyday actions seem so easy.

Benefits of Taxes

There are many benefits of charging tax rates. Some of the benefits of taxes are listed below:
  • Tax rates help regulate the flow of things in a geographic area.
  • provide funds for more facilities for growth of the people or organization.
  • By paying taxes, you don't have to buy a train, or bus to travel in, the government buys them for you so you can reach your destination easily.

Doubts of Taxes

Tax rates may provide some disadvantages. Some of the doubts of taxes are listed below:
  • Imposing tax rates often causes tax evasion.
  • Some conveniences may require tax payers to provide too much.
  • Sometimes, setting-up taxes may not be adequate to fulfill the needs of a facility.

Paying Taxes

Taxes can be paid at the nearest tax office in your area. Since there are different types of taxes, there are different types of tax offices to pay them in. Paying taxes helps the governing organizations provide the facilities everyone needs to ensure the smooth functioning of everyday activity, without interruptions. What types of taxes do you know about?

Related Links About Taxes

Feel free to visit, share, and learn more about taxes:

No comments:

Post a Comment

Write some wonderful words to share. Please leave a comment.