Updated Tax Reform Is Necessary Now

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 dont pay taxes are viable for imprisonment and stiff fines by the government.

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.

Taxes have proven to be an important part in the history of the world. There is almost no country in the world that doesnt have a contention with their current tax systems 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.

The history of taxation takes us to prehistoric times. Its 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.

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.