Taxes

 

In some countries around the world, an income tax was a way to cover the cost of various projects needed for the country's development. Right now. most people still continue to be bombarded with a bunch of different types of taxes - corporate, income and sales tax. There is still no light at the end of the tunnel. Taxes provide the dough for governments to: develop infrastructure, connect communication networks, improve military strength and offer social benefits to their citizens. Some individuals around the world seem to want to live in developed countries which usually have quite a generous social system. However, this costs lots of money for the citizens because the tax rates in advanced countries (such as Norway) are significantly higher than the rates in some developing countries (such as Bolivia). During a recession a country's financial situation dips, and various economists decide to react in many different ways. Some suggest that tax rates should remain the same or increase in order to pay for job creation projects which will reduce the higher unemployment rate. Others prefer to recommend that taxes should decrease because this will allow many corporations and individuals to have more disposable income. Whatever is the case, a government's goal could be to create a trickle-down effect which will eventually spur the economy. If additional people are working then they have more money to spend on goods as well as services. If corporations have less tax to pay, then they can invest to expand their operations. This will result in even more jobs and income, so then soon the economy should be sitting pretty. For the governments, they receive more income tax from the additional people working and they receive more sales tax from the many people consuming a larger amount. bombarded with = hit or attacked with, subjected to infrastructure = a nation's basic transportation, communications and power systems social benefits = services provided by governments (eg. welfare, health care, pension) recession = temporary decrease in business activity or economic growth dips = drops, declines job creation projects = government projects that produce jobs for people needing work disposable income = amount of income for spending or saving after paying income tax trickle-down effect = idea that financial benefits to big business (eg. tax cuts) will pass down to smaller businesses and individuals (eg. less unemployment) cover the cost of = pay for light at the end of the tunnel = end in sight dough = money spur the economy = bring more life and activity to the economy, stimulate sitting pretty = in a good condition or position