Wages are payment made by employers to employees for work done over a period of time, but while these wages are paid, there is always a reduction in the wages of the employee and this is called tax. Taxes are levy removed by the payer of wages for the government. The certain percentage can be federal taxes, state taxes and local government income taxes, which would be used by the government to fund public projects and pay for the salaries of people in public offices.
Most times, employees assume that their employers are not paying taxes and so they are being ripped off by their employers but this is not true as both employers and employees pay taxes. The taxes are based on the status filed in the tax form, so the percentage is taxed differently. As an employee, the taxes removed from wages is determined by the table brought by the Internal Revenue Service. Taxes are paid on life insurance, non-cash gifts, and benefits.
If you remember the biblical words “give unto Ceaser what belongs to Ceaser” then you should understand that tax has been around long enough and it is regarded as a must. If you are not paying tax, then you need to start doing that now. Although so many of us pay taxes indirectly and we do not know, for example value added taxes, and sales taxes are indirect taxes. Companies are taxed based on the taxable incomes after expenses have been removed.
When the government take this taxes, they are used to fund construction of roads, emergency reliefs in cases of disasters, health care, airports, Educations and other government agencies. The well-being of a society is dependent on the tax paid and how the government in power utilizes it. Taxes is meant to redistribute wealth if properly followed. Although taxes are in forms of progressive, regressive and proportional taxes, so dependent on the type of taxes, the redistribution of wealth is determined.