How To Understand Income Tax

tax Mainly, income tax is a sort of charge that is paid by the citizens of a nation to the government. The government takes these charges to run the country in a progressive way and to take care of its people.

It is generally charged according to the earned income by people and the gained revenue is used for many more welfare deeds of the nation. Income tax was first introduced in Britain by William Pitt in 1978. This time, the purpose of imposing the tax was to collect funds for weapons and tools that were being equipped for the Napoleonic war.

In the United States, income tax was charged during the civil war to deal with the financial problems of that time.  Actually, the income tax rate can be both the progressive and flat. When you are asked to pay income tax with a progressive tax rate, the taxes are payable according to the ratio of earned income.

On the other hand, a flat tax rate takes care of people in the same manner and everyone has to pay the tax in the same ratio. Moreover, an income tax method is different from one person to another person according to the way of earnings.

Overall, the gained revenue through income tax is used for the progressive projects of the nation that can enhance the lifestyle of citizens. Thus, people should not avoid income tax and they must pay the income tax according to their earnings. If you are an honest citizen of your nation, it is your duty to pay income tax without any fault.



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