Tax income or an income tax is a tax being imposed on every entity, and the amount of payable tax would vary according to their salary bracket. The income tax is under the law and jurisdiction, and anyone who fails to pay their tax is punishable by the law especially for those individuals who earn bigger income and profit and would not be able to declare their correct income tax. Income tax may be imposed by a country or its subdivisions. Each of the salary brackets has its certain income tax rate according to a fixed percentage. The income tax may change: it may increase or decrease based on the increase and decrease of taxable income as well. However, there is a certain income bracket that is not taxable by law. Income tax varies from one country to another. In Australia, the value added tax percentage is 10% on all goods and services. Read further
What is Income Tax For?
One of the main reasons why the law and its government collect taxes is because of the economy. The government projects like road constructions, free railway tickets, free use of public utilities and facilities and discounts as well as privileges are just some of the things that sprouted out of the people’s taxes. In short, this is where the budget of the government will depend on to all their projects, plans, and programs within its country. It is impossible to have no tax at all because there are some facilities and utilities that would not be able to function if there are no taxes. There is some groups and institution who solely rely on the people’s income tax. Income tax is a great help for a country because this is also where the government will get the emergency funds, calamity funds, healthcare funds and education funds and so on. If you fail to pay your tax or if you fail to declare the correct income you are earning, you can be punishable by the law.
Individuals pay for an income tax from their salaries, and this is automatically deducted by their employers. Though paying a tax can mean a deduction of your salary but, the results and effects of paying your tax right can be very visible, just look around you and see what are some of the benefits and privileges the government has been offering to all the people in the nation.