What is this tax harassment? Why should I pay taxes? What personal benefits do I get from paying taxes?

According to Margaret Mitchell, "Death, taxes, and childbirth, there is never any convenient time for any of them”. This speaks to why we often hear these questions: What is this tax harassment? Why should I pay this tax? What personal benefits do I get from paying taxes?

Before we delve into today’s discourse, if you still ask yourself these questions, it's very okay. You need to understand "WHY" because “Knowledge is Power”. Endeavor to reflect on the brainstorming questions as we go on, as this would help you have a better understanding of the concept under discussion.

a. What is tax?

Brainstorming Question: Take a moment and consider XYZ Company, which has a great vision to be a leader in plastic manufacturing in your country but has no finance for its procurement. How will this vision translate into a reality? Now, consider how possible it is for your country’s government to carry out its operations and social welfare projects without revenue.

Tax is a sustainable source of revenue for the government of every country to carry out its operations and provide public goods and services.

Tax is a compulsory charge imposed by a government on the income, profit, and properties of persons and companies, and on the consumption of goods and services.

b. Why should I pay tax?

Brainstorming Question: Take a moment and consider this: How do I contribute to my nation’s building? Have I contributed my fair share towards my nation’s building to justify my holding the government of my country accountable?

Below are reasons why you should pay a fair share of your taxes:

i. It is a civic responsibility to pay your taxes, as it is a way to contribute towards your nation’s building.

ii. Taxes are a key ingredient in establishing a social contract between the citizens and the government.

iii. Taxes are a revenue source for the government to finance public goods and services such as roads and public infrastructures, health care facilities, defense and social security, education, etc.

iv. Taxes provide the funds for the government to finance its operations, such as payment of government staff salaries and pensions, financing government debts, etc

v. Taxes are used to redistribute the wealth or income of the nation. For example, personal income taxes are paid such that higher-income earners pay more than low-income earners according to their ability to pay, thereby ensuring an equitable distribution of income.

vi. Taxes are a critical tool used by the government to ensure economic stability. During economic downturns, the government, through fiscal policy, may reduce tax rates or grant tax incentives to boost consumer spending and business investment. However, during rapid growth and inflation periods, governments, through contractionary fiscal policy, may increase tax rates and reduce tax incentives to curb excessive spending and control inflation.

c. What personal benefit will I get from paying taxes?

Brainstorming Question: Take a moment and consider if you, as an individual, can afford certain public expenditures assuming there was no government to provide such; can you construct your road and provide defense service for yourself?

Taxes are used to finance social welfare. The benefits you derive from taxes you pay may not be direct. The collective improvement of social welfare in turn improves your individual well-being. Tax revenues are used by the government to fund programs and services that are designed to support the needs of the members of society, including low-income families, the elderly, and individuals with disabilities. This ensures that everyone has access to the basic necessities of life and can live with dignity and security.

If you are reading this, remember that it is your civic obligation to pay your fair share of tax, as taxes are the lifeblood of the government of the countries of the world.

Let me know your thoughts about taxes and why you should pay your taxes or otherwise.

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