William Schantz believes it’s crucial to pay taxes. A tax is a charge imposed by the government upon businesses and citizens so the government can reach its budgetary demands. This budget is used to finance the government and public projects. Tax is also used to boost the country’s business prospects, which in turn boosts economic growth.
Importance of Taxes in Society
Without collecting taxes, the government cannot meet the demands of society. The government uses this money to finance social projects that the public can utilize. These social projects include the following:
The government collects taxes and contributes to the healthcare sector. Tax money funds activities such as medical research, social security, healthcare facilities, and the like.
By collecting tax money, the government funds the public education system. It also furnishes and maintains this system.
Through taxes, the government ensures country affairs are run smoothly. If the government didn’t invest in this, poor governance would affect the entire country and reverse economic growth. Taxes have to be collected timely and utilized effectively to ensure good governance. Tax money is also used to pay public servants such as police officers, members of parliament, and others and effectively run the postal service. Therefore, tax money ensures the government-run is smoothly and the public interest is protected.
Importance of Taxation to Businesses Explains William Schantz
Taxes are vital for business activity. William Schantz discusses the reasons in detail below.
To Enable Infrastructure
Good infrastructure such as electricity supply, roads, and telephone signals are enabled through taxes. This infrastructure is developed through the close involvement of the government. By collecting taxes, the government can inject money into these projects. Good infrastructure thus promotes economic activity throughout the country.
To Provide Loans
Through taxation, the government also injects money back into the economy. This is done in the form of loans and funding schemes.
Raise Standard of Living
Taxes can help elevate the country’s standard of living. The higher the standard of living in, the more consumption there is. This will mean a market for goods and services, and businesses will flourish due to domestic consumption. So, citizens pay the government taxes, but they also reap its rewards.
Collecting sufficient taxes is vital for effective public spending. If taxes are collected in a corrupt manner, the effectiveness of taxes is lost. William Schantz asserts that the tax collection system needs to be corruption-free, transparent, and accountable. Only then can the administration reduce tax evasion and avoidance. Also, when citizens pay their taxes timely, the government’s revenue increases, enabling the government to increase public expenditure. Thus citizens can enjoy quality public services. All this increases public trust in the government.
William Schantz’s Concluding Thoughts
This shows us the importance of paying taxes. Collecting timely taxes from citizens is the first step toward an effective administrative system. William Schantz firmly believes that paying taxes on time should be every individual’s priority as a responsible citizen.