Why do we pay taxes and is it a duty or responsibility?

The money you pay in taxes goes to many places. In addition to paying the salaries of government workers, your tax dollars also help to support common resources, such as police and firefighters. Tax money helps to ensure the roads you travel on are safe and well-maintained. Taxes fund public libraries and parks.

Is paying taxes a social responsibility or duty?

Paying tax is part of the social responsibility of any organisation. Businesses benefit from infrastructure, security, education, health and social peace, they use resources, so paying taxes is elementary to be able to maintain the services that make business possible at all.

Why is tax burden important?

The tax burden, defined as the ratio of the collected taxes in a particular period against the total product, is commonly used to determine the effect of fiscal and tax policies on the socioeconomic structure.

Why do you think it matters in paying taxes?

Taxation not only pays for public goods and services; it is also a key ingredient in the social contract between citizens and the economy. Holding governments accountable encourages the effective administration of tax revenues and, more widely, good public financial management.

Is paying taxes a moral duty?

The moral obligation of paying taxes stems from the virtue of commutative justice. This theory was originally based on a presumed contract or pact between the individual and the state. The tax is the price paid by the citizen for the services rendered to him and for him by the state.

Who is responsible to pay taxes?

Who are the Tax Payers? Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.

What is meant by tax burden?

Tax Burden is a measure of the tax burden imposed by government. It includes direct taxes, in terms of the top marginal tax rates on individual and corporate incomes, and overall taxes, including all forms of direct and indirect taxation at all levels of government, as a percentage of GDP.

What do you understand by tax burden?

Definition of ‘tax burden’ the amount of tax paid by a person, company, or country in a specified period considered as a proportion of total income in that period.

Do you have to pay taxes?

The Law: The requirement to pay taxes is not voluntary. Section 1 of the Internal Revenue Code clearly imposes a tax on the taxable income of individuals, estates, and trusts, as determined by the tables set forth in that section. (Section 11 imposes a tax on corporations’ taxable income.)