MGMT 4A Chapter Notes - Chapter 7: Tax Rate, Individual Retirement Account, Gross Income
Document Summary
The only two things in life that are certain are death and taxes. --benjamin franklin. Even when you die you are likely to get taxed, at least in some countries that have the so-called estate tax. Taxes goes towards military, streets, government building. There are differences between the taxes out there and their link to actual need. Ex). gas taxes used to build roads and infrastructure for cars. Goes with the benefit principle where you get what you are taxed for. It"s why groceries and pharmaceuticals are exempt in some jurisdictions. Additional charges for getting certain permit or licenses through the state. Hunting licenses used to pay for game wardens. Limits # of hunters and conserve game. A tax on things like cigarettes and alcohol. Also good revenue sources: demand for sinful products stay strong despite price changes. A great deal of debate about level and burden of taxes. Many ways to plan your finances to reduce your taxes.
