Taxation is the imposition of compulsory financial charge or some other type of levies imposed on individuals or entities by governments in almost every country of the world.


The purpose of taxes is to provide the government with funds for spending (regional, local, or national) without inflation. Various taxes are imposed to meet the needs of common citizens as well as administrative, civil and military expenditures of the government. In other words, without taxes, it would be impossible for the government to run the country.


Direct taxes are those which are levied directly on the income earned. On the other hand, indirect taxes are those which are collected on your behalf and are paid to the Government


Since indirect tax is the same for both the rich and the poor, it can be deemed unfair to the poor. Indirect tax is applicable to anyone who makes a purchase, e-commerce entities, theaters, or any services availed where you are liable to pay tax. While the rich can afford to pay the tax, the poor will be burdened by the same amount of tax. Thus, indirect taxes may be seen as regressive.


Nowadays taxation has gone out of control. Any transaction a citizen does is now taxed. A person cannot do anything legally without paying tax to the government. If someone invents or develops a new product or service, the government will look for ways to tax them. Since the governments are run inefficiently, they are always short of money, in spite of over taxing their citizens.


Taxation is becoming complex and more people are depending on experts to calculate taxes and find ways to avoid paying the taxes. Taxes should be kept simple so that everyone understands them and pay their taxes voluntarily for their own benefits.


An income tax is an amount that every citizen of the country, an individual or a business, is required to pay to the government.


I feel government should abolish all taxes and levy only Income tax on its citizens. After all it gives the true wealth of the nation. Along with the income tax, government can levy a new tax called People tax, which is a very small amount  ($1) every citizen should pay. This will also show the population of the country.


By abolishing all other taxes, people can concentrate more time on their work. It also helps in reducing the cost of living and thereby improves their living standards.


In modern time, I feel governments should not force taxation and punish or criminalize those citizens who are not able to pay taxes. Since Governments are elected by people they should not behave like Rulers. Elected Representatives must reflect the standard of living of their people. I think, the government should tighten their belts, when their income from tax is less, because it shows its citizens are not earning more. But in reality, government will try to stay comfortable at any cost. They will increase taxes on their citizens even if their country is facing economic crisis and its citizens are struggling to survive.


People will voluntarily pay taxes if they trust their government, otherwise they will evade taxes.



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About Author

Chandrashekar C.H.

Born in Bangalore, India. Studied Engineering and became an Entrepreneur. Creative and a Logical Thinker, I like to read and explore on various subjects like Science and Technology, Nature, Human psychology, etc. Love Soccer and Chess. "I took up writing because I like to share my thoughts and experiences with readers".