Why Do We Pay Taxes?

For a government to carry out schemes that will benefit the citizens, a part of income has to be paid in the form of taxes. Pay taxes can seem like a burden especially when your hard-earned income is taken away. The more you earn, the amount you owe to the government also increases.

Sure, it is natural that you’ll feel annoying when pay taxes are charged but the government needs funds to ensure that their citizens have access to quality services and infrastructure. 

It is also the government’s responsibility to ensure that low-income group of people is supported and developments are made regularly. Contact Professional Tax Preparation Atlanta Services.

Taxes Charged By The U.S. Government

Except for individual income tax, many other pay taxes are charged including,
• Sales Tax
• Corporate Income Tax
• Property Tax
• Capital Gains Tax
• Payroll Tax
• Excise Tax
• Tangible Personal Property Tax
• Estate And Real Estate Tax

Federal Programs

There is local, state, and federal government. By the taxes received from the people, part of the amount is sent to the federal government in the form of federal taxes. Federal taxes are used to fund social security income, the U.S. military, medicare, public health insurance, and many other programs. So the accumulated federal taxes are used for national welfare purposes which even covers you and your family members.

State And Local Programs

Not only the nation as a whole but development of every area or locality is important. The state income tax charged on your income acts as revenue to fund education, medical care, roads, and many other welfare programs.

Tax Returns In The U.S

All the tax returns are filed with Internal Revenue Service (IRS) and they will calculate if the government owns you or you owe the government. A refund of taxes will be made if additional tax has been charged on you. Federal tax form IRS Form 1040 is the most common return form used.

Through a tax return form, the financial information of a taxpayer can be gathered and tax owed is calculated. If any mistakes are made while computing pay taxes, they can be rectified while filing returns.

The exemption is provided for governments i.e, no tax is charged on any government. Even certain people, income, and property have an exemption in the state and federal taxation system.

At All American Tax and Credit Advisers, we provide professional and seamless tax preparing services in Atlanta.  contact AATCA at +1 770-280-1082.

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