Benefits of Filing Tax Returns
When you categorize tax, you will find that three are property taxes, income taxes, estate taxes, and consumption taxes. Property taxes are assessed annually and a portion of the value of the property is given to the government. Income tax is levied directly from your personal income and in most states; the poor are exempted from paying such. With estate tax, the goods and property taken from an estate can be sold in order to raise money to be used by the government. Consumption taxes are paid when products and services are purchased when goods are imported into the country, or through tolls for roads and bridges. Income taxes are harder to collect than consumption taxes. There are taxes that are levied to discourage the consumption of some items. The government may impose sin taxes to ensure the citizens do not use alcohol, tobacco, or prostitution that much. Generally, their consumption is not fit for human health.
The government uses the tax paid to pay for the services that it offers to the community. Every community should have clerks, administrators, firefighters, and maintenance workers to ensure that there is a smooth running in the community. Every person deserves payment for the services offered; thus, the firefighters, clerks, and administrators should be paid. Regressive tax is one that has a greater effect on the poor more than it has to the wealthy. On the other hand, the taxes that affect the wealthy people more than the poor are termed as progressive.
It can be difficult to get a vehicle loan especially if you do not file your tax returns. It is important to note that most banks ask for the copy of the tax returns. In addition, you can show the copy if the loan application is rejected and that could save you. You can also use it if you are not getting as much loan as you wish. If you want some refund, you should be able to show a copy of your tax return; thus, it is necessary to ensure that you file your returns within the expected time.
It can be a tough time for people who do not file their taxes when they want a visa. You should not go for the visa interview before filing your tax. You will note that some embassies need tax receipts for the last three years, while others require the most recent certificates. It is a great way to prove to them that you depend on yourself. Therefore, the main aim of taxes is to help collect government revenue in order for it to provide good services to the citizens.