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The concept of taxation dates back to ancient times and it had a large impact on the creation of our economic system. But how often do we stop and think about the real reasons we pay taxes? In fact there are four main ideological reasons we pay taxes, and in this entry I have examined each of those four reasons.
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I think revenue is the most important purpose of taxation because it helps fund the country's basic needs like the educational system, government agencies, public roads, bridges and highways, military and judiciary system. Without revenue, it would be incredibly hard to fund, say for example, books for public schools which would be the responsibility of the government. Individuals and businesses are being taxed through their income which will then go back directly to our country's economy helping us thrive and stay funded in order to accommodate the needs of the citizens.
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The purpose of redistribution is to charge tax from those of higher income, i.e., the 'wealthy and privileged.' The money from their taxes will then be used to fund programs to help people and families who are underprivileged.
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The most common example of re-pricing are cigarette and liquor taxes, this is one way of discouraging people to indulge in such vices and is also an effective way to control balance and a subtle way to control spending.
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It has been said, "No taxation without representation." This means, the citizens may have the knowledge that they are to be taxed, but they must need to know where their taxes are going. All of the information regarding taxes, their uses, reasons and what they represent should be made available to the public.