Updated Tax Reform Is Necessary Now

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 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.

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.

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 are always paid in the form of percentage though there are many other methods followed. These percentages vary according to the entity that decides them. Indirect taxes reach the government more quickly as people pay the tax along with the purchase of the goods.