Answer to Question #271255 in Accounting for Another you

Question

1. The government has called upon its residents and citizens to pay taxes and assume monetary burdens so that it can finance public needs and perform its functions. Mr. Dela Cruz refused to pay taxes. Accordingly, he does not care whether the government continue to exist or not. Aside from that, he just wanted to save all his millions for himself. Is the contention of Mr. Dela Cruz correct? Why?

Answer 1

1.). Taxation is the imposition of compulsory levies, namely taxes on individuals or entities by governments

A tax is a mandatory financial charge or other type of levy imposed on a taxpayer by a governmental organization to fund government spending and other public expenditures.

2.). The primary goal of primary taxation is to generate revenue to cover massive government spending and economic development. The majority of governmental activities must be funded through taxation.

3.). The secondary purposes of secondary taxation include ensuring price stability, control of cyclical fluctuations, control imports and reduction of inequalities in wealth and income.