Money Wise
State Development with Income Tax
It should be noted that payment of income tax is actually perceived as a burden by many. Very few individuals or almost none have a positive attitude towards tax payment but the fact is that income tax payment is the most crucial way of state development. Income tax payment helps a country to develop and improve some worn out facilities for example infrastructure through a process known as public expenditure.
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Funds are kept in treasury and the individuals concerned with the evaluation of public projects that need execution draws a budget which actually fits well the projects that need to be given first priority in their execution. In case the government finds that the funds are not enough for executing all those projects that are vital, some are selected which are more important while the rest await the other budget for their execution. If the government finds that it does not have enough funds in the treasury, it then finds a way to increase its income and this is probably through the income tax increase which is passed to individuals of that country who will become the beneficiaries of public expenditure.
The Ability to Pay Income Tax
Individuals pay taxes according two axioms. First, we consider the ability to pay taxes. This concerns the ability of individuals to pay income taxes and it is the mandate of the government to decide who to pay taxes and not to pay according to their abilities. Professionals in the taxation analysis have all the records of individuals who are earning incomes monthly. It is the mandate of these professionals to evaluate who is able and not able to withstand a particular tax rate and thus they distribute the tax rate according to people’s abilities.
The Ability of High Income Earners in Income Tax Payment
High income earners will automatically find themselves paying a bigger tax than the low income earners reason being that they are able to pay tax. The ability is measured by their levels of incomes and a coherent judgment is made which will not discriminate any citizen in terms of income tax payment. Payment of income tax should be seen as a fact of being patriotic to your country and caring for the future generation. This is because if you are paying tax it means that you love your country since you wish it development in terms of infrastructure, erecting amenities like schools, hospitals and many more which will take care of the future generation.
The Willingness to Pay Income Tax
Another axiom of the income tax payment is the willingness to pay income tax. In many countries, payment of tax is mandatory unless you decide not to work and earn any income that will be taxed. It is advisable to individuals of a country to have the willingness to pay tax and build their nation together. One is supposed to work on those high posts so as to earn a good salary that will be taxed and rebuild the nation. Willingness to pay tax should be encouraged in every country since it is the key to country’s growth in GDP through government expenditure.
