Government Taxation Essay Example | Topics and Well Written Essays - 500 words

Government Taxation - Essay Example Property taxes are collected by home and business owners to pay city governments. Each one of these forms of collections plays a part in adequacy of revenue production, equity, economic effects, collectability and transparency. It is important to understand how these taxes are received and used through government spending. The government can predict the amount received based on the economy. Income tax is a large part of the receivable taxes that the government receives. Income taxes are collected from every individual who receives income. Even out of state residents are taxed. (Wildasin2010) All income made is reported to the IRS and taxed. Economic effects play a role in how much income tax is being received by the government. When individuals are not working and receiving income, the government is affected. The more income floating thorough the economy means more collectability for the government. The collectability is achieved when individuals and business file their tax returns. The filing of federal and state income tax returns allows for payment or the amount of income tax owed or is directly withdrawn from the payer’s income. The government has equity in the income that is made by individuals. The equity is in the form of taxes. This is true because individuals owe taxes. Owing the taxes is what allows the government equity.