Some people believe that they should be able to keep all the money they earn, and should not have to pay tax to the state.
To what extent do you agree or disagree?
It is thought by some that they ought to be tax exempted by the government for all of their incomes. In my opinion, I do not agree with this because a complete tax exemption will create an imbalance in society and hindrances in the achievement of long-term growth prospects.
One main reason against the tax exemption is that it will create a shortage of funds for the government as it always needs financial resources in order to perform its duties. In other words, it runs the public departments in different sectors, for example, education, health, transportation, and police, with the help of collecting revenues as a result of tax collection from its citizens. Furthermore, the purpose of tax collection is to maintain the social balance in the society by providing equal services to all its citizens whether they pay more or less tax. Therefore, such permission to save all income will create a huge constraint on funds available to the authorities for running expenditure, which will eventually disturb the social equilibrium in the society.
Another point to support tax collection is the requirement of sufficient investment in infrastructure, without which, the country will not be able to see growth in the future. These investments are termed as capital expenditure, which is incurred by the government in different sectors, such as the development of roads and highways, building dams, and increasing the capacity of power generation, so that long-term future benefits can be availed after some years. Moreover, this development process requires time as development cannot take place over the night even if you have sufficient funds available. For this reason, it is important for any country to have enough tax revenues so that it can plan and execute long term development programs.
In conclusion, I firmly believed that the submission of tax by its citizens of any country is significant in terms of not only running a country in the short run but for future growth and development in the long run as well.