Knowing More About Taxes
Taxes are generally among the most common types of injections in any kind of a government that contribute greatly in the growth of any kind of an economy. Every person in every country is generally required to pay taxes and hence the reason why they are taken as compulsory payments by every person in a country.
Taxes are not paid to the various private institutions or individuals but are this paid to the government where the government uses the collected money or taxes to develop an economy. Taxes however when paid to the government, the citizens do not get a direct return or payments from the government but despite they are paid indirectly in form of various developments made by the government to a country. However, the taxes are taken as among the most crucial instruments of fiscal policies in any kind of an economy.
Taxes therefore greatly contribute to the various changes or adjustments in the performance of the various economies across the world. Taxes are generally found in two major categories. Taxes are found in two main categories as well as many other sub-branches under these two main branches. Below are the two main categories of taxes that every citizen in every country will be subjected in.
Direct taxes are generally the first category of taxes that most of the citizens in various countries across the world are required to pay to the government. Direct taxes mean that they are paid directly to the government without having to include a third party and hence the main reason why they are taken as taxes paid by the same citizen who is required to pay them to the government. The second category of taxes is the indirect taxes which various people from different parts of the world are also subjected to. These are taxes that are to involve a third party during the payment and hence the reason why they can also be referred to as third party taxes. The indirect or third party taxes are generally paid by a different party or person from whom the tax was levelled too and this applies in most of the business organizations where various firms or business corporations usually pay the various taxes to the government on behalf of their workers or employees.
Taxes have however various benefits. One of the major benefits of taxes is that they provide financial support to the government to facilitate smooth running of the governments as well as funding various government projects like infrastructures, building of schools, health centers and many other important projects to the various citizens.