Did you know that in 2019, over 200 million tax returns were filed electronically? Everyone is guilty of procrastinating their taxes at the end of the year.
Think of taxes as a way for your government to keep systems working, such as healthcare, education, security, and law and order. Taxes also afford government agencies the luxury of making budget cuts if the economy takes a turn for the worse.
So, the benefits of paying taxes are plentiful. Keep reading to understand why do we pay income tax and how it can leave you with a clean conscience.
Maintaining Safe and Reliable Roads
Paying income tax is crucial to maintaining safe and reliable roads. The tax revenue generated helps fund the maintenance, repair, and upgrade of local roads, bridges, and infrastructure.
Income tax is the primary source of much-needed funds that help maintain our roads to keep them safe. It also supports the movement of goods and services. Furthermore, a robust infrastructure allows citizens to get around more easily and quickly.
Getting Credits on Your Tax Returns
Getting credits on your tax return is one way of getting back some of your hard-earned money. Credits are a form of payment for taxes that have already been paid. They can be used as a refundable or non-refundable offset depending on the criteria of the credit applied.
For example, credits like the Earned Income Tax Credit, Child Tax Credit, and American Opportunity Tax Credit can provide a substantial return on your taxes. Some credits can even be applied to future taxes.
Having Access to Government Benefits
We pay income tax to contribute to the government and our national economy. Income tax helps the government provide public services to citizens. Without an income tax, the government could not offer these critical benefits to the public.
By paying income tax, we are contributing to our society and helping to ensure everyone can access government benefits.
Receiving Tax Refunds
The icing on the cake is receiving tax refunds due to the income tax we have paid. We have not only contributed to our country but are rewarded with a portion of it back. Tax refunds give us the extra money to pay down debt, invest in our businesses, take a long overdue holiday, or use it in other ways to improve our quality of life.
In essence, income tax makes us part of the economy, and receiving tax refunds is a tangible reward for that contribution.
Having a Reliable Record
Paying income tax is essential to having a reliable income record and supporting infrastructure. Having taxes collected helps to fund vital services that communities need. It also helps track income to identify fraud and black-market money laundering.
Ultimately, income tax is a meaningful way to record and account for incomes, ensuring the nation’s prosperity in the long term. It is also important to know more about income tax advice for unfiled tax returns.
Understanding Why Do We Pay Income Tax
Why do we pay income tax? Income tax ensures our nation can fund essential programs and services. The benefits of paying income tax are wide-ranging, from providing funds for infrastructure projects to supporting critical services such as emergency healthcare and public education.
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