No one likes paying taxes, but it is not like we have an option. Well, we could just not pay… go off the grid, live in the mountains, and grow our own food, but this is not a viable option for most but, everyone has to do it anyway. So if we have to pay we might as well know What do taxes actually do for us, and where in the world does does all that money goes? The answer to these questions is obviously very simplified below, the true answer would take Phd. in taxation and access to the inner workings of our political system. Lets keep it painless.
Taxes are the primary source of income for federal, state and local governments. They fund every project that is dedicated to public interest, from schools to roadways. They also provide funding for all social services and provide the salaries for any and all public employees, such as teachers, policemen, firemen, and government officials themselves.
If we weren’t taxed in the manner that we life could get pretty annoying. Imagine if you had to pay a fee every time you pulled out of your driveway. Consider the frustration if every time you needed a the life saving service of a police officer you were presented with a bill shortly after, or every time you had to call for a fireman you had to pay a premium for fire retardant vs water. Without taxes, schools would be fully privatized and roads would all have tolls. Your taxes make these services part of our day to day minimum expectations. Without taxes from the people there is no way to provide even the most basic of services. Reliable public safety and the protection of our way of life is one of the unsung benefits of taxes .
This is why we pay taxes. Every person is responsible for paying a little, and in the end it creates enough revenue for the government to function, and for the services that the people require to be provided.
Here is a quick rundown of the types of services that taxes make possible:
- Public schools
- Police services
- Fire departments
- Military support and National Defense
- Federal assistance programs
- Environmental services
- State parks
- Federal housing
- Medical services
Of course, some of these items get more funding than others. A rough quarter (that is a full 25%) of all income taxes go to supporting military efforts and national defense. This is easily the biggest portion of the tax budget. Coming in under that is the cost of education, which accounts for a little more than 20% of all tax revenue.
Few people argue that taxes are necessary, the real political hot button are who pays more, who pays less , how efficiently they are used and for what. As a tax and accounting firm we don’t pretend to know the answer to this, our role is to be experts in the latest rules and regulations to make sure you are not paying too much! It changes every year and is composed of about 74,000 pages!!
No one likes paying taxes, but once you breakdown where those tax dollars are going, many agree that taxes are a necessary, if unfortunate, aspect of our way of living. The best way to pay your taxes is to plan ahead and to be aware of your tax burden throughout the year. Working with a skilled tax accountant can help alleviate much of this burden. Contact MBS accountancy for more information about working with an accountant to handle your taxes.