Taxes are incurred to every citizen in almost all types of commercial activities. If you are employed, you are not exempted to social security, income revenue, and health-related taxes. You also pay taxes when you dine, shop, or participate in any publicly organized activities. You pay surcharges for your mortgages and life insurances, even when you travel internationally or locally. It is safe to say that a government or state is run by the people’s taxes so it is very important to settle your government-mandated dues rightfully and timely. Sometimes, it pains to pay taxes especially that it covers a huge portion of your income for up to 30 percent. This is especially true because of the fact that tax benefits are distributed statewide or nationwide, so the positive effects are not really drastic. To keep you enthusiastic about paying taxes and realize that there is more to it than just remitting your hard-earned money, here are just some of the many benefits of paying taxes on time.
10. National defense.
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At least 25 percent of a country’s overall tax collections are allocated to the national defense. The military receives one of the biggest cut from the national budget together with healthcare and infrastructure. Without citizen tax, it is very difficult to establish a solid force of national defense. Security threats are everywhere and every country has to protect itself not only from internal conflicts but also from international crises. Taxes are used to pay for personnel salaries, equipments, gears, hi-tech machines and transportation, and infrastructures.
9. Government-subsidized healthcare.
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Hospital and medication costs are extremely expensive. About 22.5 percent of the US government budgetary allocation goes to Medicare and Medicaid. Without these programs, it would be difficult for an ordinary citizen to avail of surgeries, medical checkups, and even prescription drugs. Government subsidies for medical programs are important to maintain a nation of healthy citizens. With the help of your individual taxes coming from employment, products, or services, you are helping your fellow citizens, friends, and relatives to live a longer quality of life.
8. Support for education.
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In most Western countries, education is costly. A family has to have a decent source of income to be able to send their children all the way to finish a college degree. This is why it is just constitutional that a government gives every person the right to access free education. Though this is not actually a reality for college students, many families have benefitted from free primary and secondary education support from the government. Taxes are also used to accommodate college loans, which are in turn paid by the borrowers with a minimal to low interest rates.
7. Social equality.
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It is a factual reality that wealth is unevenly distributed among the rich and the poor; thus, imposing progressive taxes depending on a person’s income bracket provides a sense of social equality by distributing wealth. It also provides opportunities for investments and employment for people.
6. Income and retirement security.
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The next best reason why you should pay your taxes appropriately and timely is that it gives you the benefit of retirement security guaranteed when you reach the age of 60 and above. This is probably one of the biggest investments in your lifetime. It is almost similar to bank savings. When you reach your retirement age, you have all the benefits to withdraw all your earnings for all the years you have worked and remitted income taxes to the government. Other benefits such as child support system, maternity allowances, and food and nutritional assistance are also derived from income taxes.
5. Payment for global loan interests.
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Global organizations such as the World Bank and International Monetary Fund provide loans for countries to be used for infrastructure, military defense developments, and other allocations that are deemed beneficial for the growth of the nation. These loans do not come free and are usually incurred with a least an 8 percent interest every year. Taxes paid are used to pay these interests to prevent ballooning debts and financial crises.
4. Veteran assistance.
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About 4.5 percent of government spending goes to veteran assistance programs such as income and housing support, medical subsidies, education, and training not only the veterans themselves but also their families. When you pay your taxes dutifully, it is an expression of gratitude to these war heroes who paved the way for the country’s liberation against oppressive regimes in the past and present.
3. Protection of natural resources, energy, and environment.
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Majority of industrial operations are dependent on natural resources such as oil to facilitate the use of machineries. These materials are excavated from nature and so environment and energy protection should be a top priority of any government. A portion of citizen’s taxes goes to the preservation of rainforests, mining sites, ocean and marine life, and even historical spots. It is important that people strive to maintain an ecological balance between manmade structures and natural resources. This is vital for the survival of humanity and all that dwell on Earth.
2. Establishing strong international affairs.
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About 1.7 percent of the national budget goes to international efforts in aid of monetary of in-kind assistance to other countries. In times of crises such as the missing Malaysia Airlines Flight MH 370, all nations are called to build alliances to resolve problems and disputes. Rescue missions, charitable efforts, and relief operations are just a few of the examples of these international relationships.
1. Development of science and technology.
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In this modern world, there is a demand for continuous development of science and technology. It seems that technology has become a survival necessity and most lives are dependent on it. A fraction of people’s tax goes to research and development efforts in science such as those facilitated by NASA and National Science Foundation. Other efforts include the continuous study to provide cure to deadly diseases such as cancer, AIDS, and other epidemics that casts fear worldwide.