Advantages of Filing Tax Returns
When you categorize tax, you will find that three are property taxes, income taxes, estate taxes, and consumption taxes. When it comes to property taxes, you have to surrender a certain portion of the value of your property to the government. When a portion of your salary is deducted and paid to the government, we call that income tax. The government can also get revenue by selling some of the goods and property grabbed from an estate. The government can get revenue from the taxes paid when goods are imported into the country or when products and services are purchased. Income taxes are harder to collect than consumption taxes. If the government wants the citizens to stop using various products; it may impose heavy taxes on the same. The government can minimize the use of alcohol, tobacco, or services like prostitution by levying a tax, sin tax, on the citizens. Generally, their consumption is not fit for human health.
There should be a source of funds in order for the government to ensure that the people in the community get services; that is where taxes come in. It is hard for a community that does not have clerks, administrators, freighters, and maintenance workers to function well because these people are a vital part of society. You should note that these people should be paid. Regressive tax is one that has a greater effect on the poor more than it has to the wealthy. On the other hand, the taxes that affect the wealthy people more than the poor are termed as progressive.
It can be difficult to get a vehicle loan especially if you do not file your tax returns. You should produce a copy of the returns to the bank that you wish to take your vehicle loan from. If you show the bank your copy of the returns after the rejection of the loan application, the bank might reconsider your application. Those people who get lower loan limits can use their returns to claim higher limits. If you want some refund, you should be able to show a copy of your tax return; thus, it is necessary to ensure that you file your returns within the expected time.
It can help you during visa processing. Traveling overseas requires you to furnish the tax receipt for the last few years before the visa interview. You will note that some embassies need tax receipts for the last three years, while others require the most recent certificates. It will show that you have some money. Therefore, the main aim of taxes is to help collect government revenue in order for it to provide good services to the citizens.