Everyone knows that “TAXATION”
is necessary in a modern state: without
it, it would not be possible to pay the soldiers and policemen who protect us;
nor the workers in government offices who look our health, our food, our water,
and all of other things that we can not do for ourselves; nor also the
ministers and members of parliament who govern the country for us. By means
of “TAXATION” , we pay for things
that we need just as much as we need somewhere to live and some-things to eat.
But though everyone knows that “TAXATION” is nessasry,
different people have different ideas about how “TAXATION” should be
arranged. Should each person have to pay
a certain amount of money to the government each year? Or should there be a tax
on things that people buy and sell? If the first kind of “TAXATION” is used, should every one pay the same tax,
whether he is rich or poor? If the second kind of tax is preffered, should everything
be taxed equally?
In most countries, a direct tax on persons, which is called “income tax”, exists. It is arranged in
such a way that the poorest people pay nothing, and the percentage of tax grows
greater as the taxpayer’s income grows. In
England , for example, the tax on the richest people goes up as high as
ninety-five per cent (95%)!
But countries with “direct
taxation” nearly always have “indirect
taxation” too. Many things imported into the country have to pay “taxes or duties tax”. Of course, it is
the men and women who buy these imported things in the shops who really have to
pay the duties, in the form of higher prices. In some countries, too, there is
a tax on things solid in the shops. If the
most necessary things are taxed, a lot of money is collected, but the poor
people suffer most. If unnecessary things like jewls and fur coats are
taxed, less money is obtained, but the tax is fair, as the rich pay it.
Probably this last kind of indirect tax, together with a
direct tax on incomes which is low for the poor and high for the rich, is the
best arrangement.
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