How To Do Taxes

Taxes are one of the most dreadful tasks you might ever have had to perform. They seem greatly unfair, and it is always annoying to see huge amounts of your salary being deducted because of taxes and you end up with only a small, limited paycheck. As crazy as it may sound, taxes were not always mandatory, and governments did not necessarily always collect taxes. There is an entire history behind the origins of taxes and how it has made their way into the modern world.

The first form of taxation was levied in Ancient Egypt. The dictatorship form of government suggested that the people had to offer one-fifth of their crops to the pharaoh as a sign of respect, and if an individual did not own land and therefore had no crops then he or she would need to offer a few hours of free-of-charge manual labor to compensate. Of course, this was an unpopular act but considering the norms of the time, people did not have any option but to comply.

When the British wars began, a similar form of taxation was levied on the people. During the fight against napoleon, the people were filled with patriotism and were happy to fund the war. That is when they willingly paid a small share of their income in taxes. Once the war was over, taxation continued. That is when it lost its popularity.

Today, Taxes are a way for the government to stabilize the economy. Taxes are used to control the real income of the people and therefore indirectly control the demand and supply origins. In this way, the government can use taxation to control employment levels, inflation, prices, and other key fields of the economy. It also uses taxes to generate revenue for government spending so it can improve the living conditions of the country.