Every citizen has some responsibility or the other living in a country. For instance paying taxes on time is a very important responsibility which must be fulfilled by every citizen irrespective of the country that the individual is residing in. The tax collected by the government is used for the development of the country. The money is usually spent in construction of roads, hospitals and other useful buildings. A large part of the money is also spent on research so as to ensure progress and growth in the country. Hence it becomes imperative to pay tax in time. This paper will throw light upon the benefits of reducing the tax, a comprehensive analysis of how it can impact the lives of individuals will be presented in this paper.
The Impact of Low Tax on the Family Life of an Individual
Lowering the tax will benefit the lives of hundreds of thousands of people all across the globe. Some people are very bad at financial planning and hefty tax can break them down within no time. Lowering the tax will provide a lot of relief to such people. People with majuscule family find it really hard to pay tax and lowering the tax will help such people immensely. The needs of human beings are constantly on the rise and it is high time to reduce the tax, even a small reduction will be much appreciated by people all across the globe. The money saved can be spent of countless things, for instance that money can be used to buy a small automobile, a family that has 4 members but have no proper means of conveyance will surely benefit from the reduction of tax. This will also make several people who have two wheelers less vulnerable to accidents. When they buy a small automobile, they will become much safer than earlier.
Investment
Reducing the tax will encourage the practice of investing among the people. Money saved by the people can be invested in thousand things. Stock market is a very good area to invest in. This is a very good time to invest because recession has brought down the value of several companies that are ought to bounce back. Money invested in stock market will stimulate the economy of a country, lowering the taxes will have several other benefits too. Real estate is another glorious prospect, money saved can be out into real estate and the value of land has depreciated a lot because of recession, it is ought to rise in the near future. Mutual funds are another lucrative option and there are several other options that an individual can invest in and make a fortune. Once the practice of investing is inculcated among the individuals then there is no stopping the economy of that particular country. The economy will inevitably witness higher growth than ever. Lowering the tax will significantly improve the standard of living of the people; they will no longer have to sit calculating what fits in their budget and what doesn’t. The demand for luxury goods will go up and so will the prices, this whole scenario will improve the lifestyle of the people and it will also promote the habit of saving and investing in them, what more can a government ask of its citizens. There will be prosperity in the country and the same will motivate the people to work very hard, this will again work in the benefit of the economy. For instance the people in Japan are believed to work the hardest when compared to the people in any other country, this is the only reason why Japan is way ahead when it comes to innovation, similarly lowering the tax will motivate the people to work really hard for the government and most importantly for their comfortable survival.
Conclusion
Lowering the tax certainly makes sense and any government looking to transform the lives of the people in a county must lower the taxes. The paper has already thrown light upon several advantages of the same. This change will also help in eliminating poverty in a country to some extent, when people will have enough to take care of their needs, they will surely start thinking about the other people and this will inculcate a very good feeling among the people. This will make a nation prosper and this will eliminate the suffering of the people to a large extent. People will start making good decisions like investing in stock market; mutual funds, real estate etc and many people will end up becoming millionaires, the more rich people in a country, the better. The rich people will do something or the other for the government and this gratitude will transform the fortune of that particular country. After looking at several positives, it is highly advisable to lower the taxes and to enable the people to have a very good life.