Indeed, every good citizen must fulfill his civic duties such as voting, protecting the public good, and paying taxes. With this in mind, you may be wondering what your taxes are for... find out in this article some of the uses of taxes.
Economically and financially
Economically, taxes serve as a means of regulating the state's economy. It allows the state to control the economic activity on its territory and to be able to tax them. Thanks to parliament, which passes laws to set the taxes and charges to be applied to different areas of activity.
In financial terms, it is a means of domination and control of the different activities carried out in a state. Also, these taxes enter into the financing of different state achievements.
On the social level
Indeed, tax is a means by which the state depending on the number of taxpayers and the capacity of the latter manages to impose a tax rate. Thus, it is a political instrument held by the state.
It allows the rulers to control and distribute the contribution of citizens according to the wealth they produce and according to their activities. Also, it should be noted that it is a means of regulating social inequalities.
It allows the distribution of the state's expenses to redistribute wealth
Covering public burdens is the main reason for taxes. Taxation is the only way in which the state manages to raise revenue to cover the expenses of public services.
As far as the redistribution of income and wealth is concerned, it helps to reduce social injustice and ensures that citizens have a minimum of resources. Indeed, the taxes collected are distributed in different sectors allowing to spread its wealth and to influence its social and economic evolution.