This statement might go against the popular opinion but it is worth discussion.
Taxes are not inherently bad for society. However, a lot of people mistakenly believe that there are only negative connotations associated with taxes. The reality is that taxes are a mechanism that can be used to help shape the direction of the economy and society.
Here we can see the top 5 reasons why taxes are good.
- They Create a Healthy Economic System – A healthy and strong economy is essential to our national well-being and progress as a country. It will also help ensure that we are able to provide a good quality of life to all our citizens. Growth in the economy stimulates employment and creates the necessary revenue needed to fund government activities. In addition, higher taxes can generate more revenue for government which can be used to invest in the infrastructure, education, and other services that the people deserve.
- They Create a Safe and Secure Society – Every tax on an individual or business is considered as part of the cost of living that they face every day. Without taxes, governments cannot provide their citizens with basic necessities such as food, shelter, and clothing. Additionally, the strong enforcement of government laws and regulations ensure that the society remains safe from harm.
- They Encourage and Support Innovation – An important part of our modern economy is innovation. Constant innovation is required to not only stay ahead of the competition but also to remain profitable. Organizations use the capital that they earn from the sale of their products to help grow and expand their businesses. When the economy is stable, it allows companies to reinvest this money into innovations that might not otherwise be profitable.
- They Allow the Government to Provide Services – Taxes are used to provide certain government services such as national defence, healthcare, roads & highways, subsidies for the poor, and much more. Therefore, taxes are essential to the people and to the stability of the Indian government. The fact that there are government services that are paid for through taxation shows that our society is a stable one that will not fall apart because of our inability to provide these services.
- They Help to Shape the Economy – Taxes have the power to influence and shape the direction of the Indian economy. They can generate more revenue that can be used to help fuel the Indian economy and stimulate economic growth. Additionally, when government invests in infrastructure, education, and other services, it will stimulate the economy. This increase in demand for those services will then generate an additional need for a larger workforce.
It is important to note that a user friendly and easy to implement taxation structure is required to reap the benefits stated above.
If you haven’t yet done your tax return and need some help, the ATO has a program that is open until October. Its called the Tax Help program and is a free and confidential service open to people earning about $60,000 or less with simple tax affairs. Its available each year between July and October. Volunteers can help you in person, by phone or online. If you are not eligible for Tax Help, you may be able to access free advice and support through the National Tax Clinic program, a government funded initiative to help those who may not be able to afford professional advice and representation with their tax affairs.
For more information about the Tax Help program visit ato.gov.au/taxhelp, call 132861. For more information about National Tax Clinic program visit ato.gov.au/taxclinic
We recognise that every business and every case is different. We invite you to contact us directly for a confidential and obligation free chat about the best was to approach your specific needs.
With over 140 years’ experience in debt collection and credit management in the Tasmanian marketplace, we have the right people, tools, and knowledge to make a difference to your bottom line. Get your debtors under control quickly and easily by engaging our services now.