Thus, the rise of taxes on people, who earn over $250,000 a year is the right decision at the moment the government takes more social responsibilities at the moment therefore, the government will need more funds to cover those responsibilities.
Real estate taxes, earned income and personal income taxes, sales tax, and lottery revenue are factors that make up these differences progressive taxes increase as taxable base amounts increase progressive taxes have an effect on income and expenditures.
These taxes are assessed on the amount of income a person earns other taxes come in the form of user taxes these taxes are imposed on the people that are using the goods being taxed, such as gas tax, alcohol tax, sales tax, and luxury taxes property taxes make up the major revenues for local and city governments.
The taxes levied by the central government are on income (other than tax on agriculture income which would be levied by the state government), customs duties, central excise and service tax the state government levies value added tax (vat), sales tax in states where vat is not applied, stamp duty, state excise, land revenue and tax on professions.
(electronic concise oxford english dictionary, 2010) tax regimes vary from country to country but are an integral part of most governments in industrialized countries (carnell, 2010) there are two broad classification of tax, these are (a tax system for new zealand's future, 2010):-revenue tax: - raise revenue for government spending.
Without taxes, the government would not be able to fulfill its obligations it is necessary for us to get a proper perspective of why taxes are inevitable although we do not like the fact that we have to part with our earnings to support the government, we still have to see this as a benefit.