Why Do We Pay Taxes

July 11th, 2010

Taxes may be defined as the pecuniary burden lay upon taxpayer to support the government. It is not a donation, but an enforced contribution and any contribution imposed by government under tribute, duty, custom, excise, aid, supply etc. The characteristic of tax systems is the percentage of the tax burden, relating to consumption. Simply the progressive, the regressive, and the proportional terms are used to define the rates, progressing from low to high, from high to low, or proportionally respectively. It is also imposed by many sub-national entities. Taxes may be either direct Tax or indirect tax, and may be paid either in money or as its labors equivalents. There are many kinds of taxes with variation in tax rates.

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Entry Filed under: Business


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