Taxation

Everyone knows that taxation is necessary in a modern state: without it, it would be impossible to pay soldiers and policemen who protect us; nor the workers in the government offices who look after our heath, our food, our water, and all the other things that we cannot do for ourselves, nor also the ministers and members of parliament who govern the country for us.

But though everyone knows that taxation is necessary, different people have different ideas about how taxation should be arranged. Should each person have to pay a certain amount of money to the government each year? Or should there a tax on things that people buy and sell? If the first kind of taxation is preferred, should everything be taxed equally?

In most countries a direct tax on persons, which is called income tax exists. It is arranged in such a way, that the poorest people pay nothing, and the percentage of tax grows greater as the taxpayer's income grows.

But countries with direct taxation nearly always have indirect taxation, too. Many things imported into the country have to pay taxes or "duties". Of course, it is the men and women who buy these imported things in the shops who really have to pay the duties, in the form of higher prices. In some countries, too, there's a tax on things sold in the shops. If the most necessary things are taxed, a lot of money is collected, but the poor people suffer most. If unnecessary things like jewels and fur coats are taxed, less money is obtained, but the tax is fairer, as the rich pay it.