Some of the most important things a country or nation must impose on its citizens in order to progress are taxes. These are the fees being charged by the government to individuals and businesses. But no matter how strict the government is in implementing tax, there are still some people who won't pay. What are the consequences of this?
CRIMINAL CHARGES - Criminal charges may be filed against him when one refuses or failed to file his income tax. These criminal charges may result in imprisonment plus fines or fines alone. The United States law says that if a person is unable to file for income tax for one year, he or she will be fined $25,000 per year of non-payment and will be imprisonment for one year.
LIMITED GOVERNMENT FUNDS - Though the money you will be paying as taxes to the government may seem small compared to its overall standing, it will still matter greatly for the country's growth and development. Thus, a person who does not pay his taxes is, in essence, taking something away from the government and from the people.
On the other hand, when people pay their taxes, the following are the most important benefits they and the nation itself enjoy.
DEFENSE AND SECURITY
Part of your taxes will be spent to provide defense and security to its people. Defense and security covers not only the US but the entire global community in the case of the US. For example, the government is sending thousands of troops all over the world to maintain world peace and these troops require billions of dollars to carry out their tasks.
MAINTENANCE
The maintainance of roadways, buildings, and architectural structures owned by the government are also taken from your taxes. Because of your tax, many roads are being fixed and government buildings all over the country are also being renovated and furnished for the benefit of its people.
SOCIAL SECURITY
Twenty percent of the government's budget goes to social security which covers retirement benefits, benefits for spouses of deceased workers, disability benefits, and child survivor benefits. For social security to continue serving the people of the country, it requires billions of dollars.
Knowing your taxes, understanding what they are and paying them are all part of being a responsible citizen. And we always owe it to ourselves to pay our dues.
Are you affected by the alternative minimum tax? Or worried you might be? You have reason to be concerned. Few of the government's changes to the tax system have had a more adverse effect or have caused as much anger and frustration as the alternative minimum tax (AMT). But you don't have to be at its mercy. Read on for a few action steps you can take to reduce your chances of getting caught in the AMT net.
The original intent that led to the AMT was likely well-meaning, if probably misguided. Many legislators felt that some people simply weren't contributing sufficiently to the government's coffers.
The idea was that there were too many tax loopholes that allowed the "rich" to avoid paying their fair share of taxes. Let's not get into a debate about the wisdom of that general idea right now, but instead take a look at what actually happened to the original intent.
Once the AMT was instituted, it has been not just the "rich" who have fallen within the reach of the AMT, but increasingly the middle class as well. In fact, more than 4 million U.S. taxpayers are affected today, and by 2010, more than a third of all taxpayers in the country will be caught up in the net of AMT.
Author Resource:-
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