The main reason why people are required to pay taxes is to collect funds for the activities of the state. Other grounds are to redistribute wealth properly and to manipulate the forces of the economy. In redistributing wealth, a heavier tax weight is given to one group than the other. Those rich people usually pay higher tax than the poor ones.
Some of the actions where funds are needed include paying expenditures on improvement or building of infrastructures, enforcement of laws to maintain order in the society, and ensure that the welfare of the people is being served well. The infrastructures provided by the government are roads, hospitals, and schools. The funds are used to uphold proper education through public schools, pensions for senior citizens, and public rides for people to reach their destinations in everyday's task such as going to work. In public schools, the children living in the state are given quality education which mostly is open to all who want to study. The social responsibility of caring for the aged is also supported through social security programs. On the other hand, the national defense is one of the departments that use most of the people's taxes. This is because that the government must protect its people through the armed forces which guard the country's places.
In most of the countries, the main source of governments' fund is the taxes imposed on corporations and income taxes of the working group. Companies pay taxes in proportion of their revenues as well as the people in fraction of their payroll. The percentage that is obligatory to be paid is determined by the economic and political standards of the state. It varies from one place to another since each has its own needs and expenses.
Therefore, although the payment of tax is not voluntary even if they file their own reports, many people follow because they think that it is wise to give some of the wealth in exchange for the benefits provided by the government.
Keywords: tax, income, property, retirement, government