Every Country in the world want to give the best healthcare, school, transportation, for their residents. In order to fulfil that, government need fund to spend. One of that government source of income is tax. There are many kinds of tax, right now nearly everything that we find is tax objects.
Tax is one of funny and difficult thing to understand. When you get salary, your salary deducted for income tax, you use your deducted salary to buy an Iphone. The Iphone that you buy will got import tax and government service tax, of course you are the one who will pay that. Even after you passed away and inherit your wealth to you son and daughter. They need to pay inheritance tax first before they get your wealth.
One of the famous tax story is start in 17th century in Europe. At the beginning, Tax is told by government as equality for everyone. It is mean that rich people need to pay more tax, and poor people need to pay less. It was like tax is made to punish rich people and help poor people, like story of robin hood. So a lot of poor and middle class people really happy and agree about tax.
Unfortunately it was like a boomerang for them. In the end poor and middle class people will be pay more tax than rich people. It was simply because rich people can protect themselves with a shield called corporation. In order to increase economics and job vacancies, government will give incentive tax to corporation and let them to pay less tax. This chance is be use by rich people to protect them from paying more tax, they are simply to put their money in the name of corporation. That is mean that they control their money but own nothing. It will make them to pay less tax or no need to pay at all, and it is legal.
The poor and middle class people do not have resource or knowledge in there. It will make them to pay full of their income tax to government. This is why we need to financial education, if you do not want learn it, life will give you a lesson.
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