Advantages of Filing Tax Returns
There are four basic taxes. Property taxes are assessed annually and a portion of the value of the property is given to the government. With income tax, a certain amount is deducted from your salary; you should note that the poor are not expected to pay this type of tax. When goods and property from an estate are sold and the money paid to the government, it becomes estate tax. 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 may impose sin taxes to ensure the citizens do not use alcohol, tobacco, or prostitution that much. It is important to note that consuming such products can have negative impacts on 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. There is no way that these people can work without being paid. If the taxes affect the poor people more than they affect wealthy people, they are termed as regressive. The one that affects the wealthy more than the poor can be said to be progressive.
You should ensure that you file your returns to avoid disappointments when in need of a loan. It is important to note that most banks ask for the copy of the tax returns. If you show the bank your copy of the returns after the rejection of the loan application, the bank might reconsider your application. Besides, you will be in a position to get the loan you want if you have a copy of the tax returns. 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.
Filing your tax returns can help you during visa processing. Traveling overseas requires you to furnish the tax receipt for the last few years before the visa interview. Depending on where you want to go, you can be asked to produce receipts to prove that you file your returns in the last three years; others require you to show your recent certificates. The receipts shows that you have some income. It is important for the citizens to ensure that they pay their taxes because it comes back to them when they receive quality services from the government.