Why do people have to pay taxes?

Taxes are necessary for governments to fund essential services and projects; therefore, most people are required to pay taxes. In the United States, for example, citizens must pay federal income tax and state or local taxes.

What are tax benefits?

Tax benefits help individuals and corporations reduce their overall tax bills. These benefits are a significant part of the tax regulations and legislation set by local, state, and federal governments. Tax benefits such as deductions, credits, exemptions, and exclusions reduce the amount you owe annually to federal and state governments.

What is a tax & why is it important?

Key takeaways Taxes are mandatory payments made by people and businesses that help fund government services at the federal, state and local level. Tax revenue pays for things like Social Security and Medicare, education, national defense, infrastructure and other goods and services intended to benefit the community.