Taxes
Taxes have been a part of human society from the beginning of time, from the Roman Empire to the Egyptians. But, nowadays, what purpose do they serve, beyond just "raising money for the Government"?
This is not an argument for or against taxes, I only mean to explain why they exist!
Main Objectives
Taxes as a tool
Taxes can be an Economic tool to fight recessions, by increasing taxes in good times, Governments can encourage companies to moderate themselves, AKA, to take on less debt and to grow slower, which can reduce the probability that businesses will default on loans during a crisis.
Then, taxes can be reduced in bad times, to incentivize companies to take on more projects and investments.
Increase demand for a currency
If at the end of every month, everyone had to pay 1 STEEM to keep using Steemit, the demand for STEEM would increase, meaning, everything else being equal, the currency in which you had to pay taxes would become more valuable!
The same thing applies to taxes in dollars, euros, etc.
Optional Objectives
Beyond the macro-economic essentials, taxes can also achieve a range of secondary goals:
Wealth Redistribution
They can be set up so that richer people pay a greater percentage than poor people, meaning the less fortunate members of society have a bigger chance to get wealthier, because, among other things, they would have a bigger slice of their income to invest.
Changes in Behavior
Fast food taxes and tobacco taxes, for example, don't prohibit anyone from doing anything. Instead, they try to change the population's behavior, ideally steering them into more productive and healthy habits.
Enviorment Protection
Namely, taxes are a power that can be used to a greener economy, as they penalize those who fall behind schedule, without taking away their chance to become Carbon-Neutral
Conclusion
While many see taxes as mostly useless, everyone should still be able to comprehend the reasons given as to why they exist even in the 21st century!
Remember, Death and Taxes are The Unavoidables ;)
Now, do you agree with most of the taxes that exist in your country? Leave your answers in the comments below!
Thanks for reading!
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One other reason for taxes, is so that the government can intervene with the free market where there is an inefficient allocation of resources. A classic example is provision of utilities like electricity or water.
If a private company provided these services, then they would have a monopoly and charge what they like, which would be damaging to the economy. However competition is inefficient in this case, because why do we need 2 or 3 electricity grids. This is where governments are either the provider of these services (hence the taxes), or have pricing controls on the providers of these services.
Yeah, very good point!
Beyond the more ideal arguments for using Taxes, that is one of the most practical ones!
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Of course, no country can live without a tax system, except perhaps the UAE, but the rest have to collect taxes. It's just that often taxpayers abuse their position, and ordinary citizens are left under their thumb. But I have already found a solution and how to protect yourself from the tax lawlessness, I turned to experts. It was hard to find them, but I read the reviews here https://wall-and-associates.pissedconsumer.com/review.html and it helped me a lot to decide. I hope it will be useful for you. Good luck.