ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To make our Government rich.
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To provide for Public Goods and Services.
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To provide for Goods and Services.
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None of the above
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Detailed explanation-1: -Tax is the most common and important government intervention to redistribute income among the population. It is an attempt to share the burden of economic growth through a progressive taxation system. The tax burden on the upper income groups is higher, and the burden is lower for lower income groups.
Detailed explanation-2: -Taxes are used by the government for carrying out various welfare schemes including employment programmes. There are Lakhs of employees in various departments and the administrative cost has to be borne by the Government.
Detailed explanation-3: -Why pay taxes to the government? Government uses tax money for providing many public services for the benefit of all citizens. Some services such as defence, police, judicial system, highways etc. benefit all citizens.
Detailed explanation-4: -Payment of tax money to the government is mandatory. This money is used by the government to run the entire country. It is used to execute public services and pay salaries to the public workers.
Detailed explanation-5: -The government uses the money received to improve infrastructure, provide public health care services, and develop rural areas. Every individual and company will benefit if they pay their taxes on time every year because this will allow the government to establish profitable schemes and infrastructure.