Why do we need taxes?

Taxation makes up majority of our government’s income. With this income the government can provide us with proper infrastructure and social services for little, if no cost at all. These include Medicare, social security and education. (These facilities are known as recurrent expenditures because it is needed time after time.)

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Other expenditures include transportation, lighting, recreation etc. These services are granted to us at no costs. In many 3rd world countries where taxation is low or doesn’t exist, all of these services are to come out of one’s own pocket.

Over the many centuries, in which taxation was existent, people have cheated and avoided paying these taxes. Nowadays people with high-income put their money into trusts, superannuation, or incorporate it into businesses. Businesses would try and receive more cash transactions. This has led to a decrease in our government’s revenues, thus leading to a tax reform in hope of a more effective result.