How Does the Government Spend My Taxes?
Tax money or revenue is the income/money gained by government through taxation(a mandatory contribution by individual or company who earns certain amount of income).
Tax is the primary source of income for government. There are different types of taxes in which income tax, corporate tax, capital gains, sales and property taxes are the main taxes that boost government revenue. In total, tax payers contribute 53.77% revenue to the government as per recent analysis. This again spent on public to improve nation in various aspects like various health and welfare schemes.
How tax is used?
- Government uses the tax collected either by person/company to improve overall infrastructure like providing roads.
- Providing roads to drivers and riders have no issue on state/national Highways
- Healthcare: To provide service for prevention, treatment, cure or relief of a physical, mental, behavioral conditions, illness or a disease or virus.
- Subsidies: some goods provided at low cost to certain sectors of population (lpg, train tickets, fertilizer etc.)
- Pension: income after retirement. Government takes responsibility of its former employers &provides pension. Approximately 6.42% of government income is used for pensions.
- Also tax is used to transferred to States & territories for emergency management & development, education facilities.
- Every individual who earns income should pay taxes in which they will be benefited in return in forms of different welfare schemes & development Programmes or infrastructure by the government.
Question 1: Name some common types of tax.
Some common types of taxes are- Income tax, payroll tax, corporate tax, sales tax, property tax, tariff and estate tax.
Question 2: Where is the tax money used?
The tax money is used in social security, healthcare, defense and interest on National debt.