Tax Refunds

A tax refund is something that many of us would hope for but far too few ever see. Although some people will receive a tax refund 2016, that number could have been more, if everybody was aware of all the tax benefits they were entitled to. It is often the case when a person receives a tax refund, it is because they hired a professional tax accountant to fill in their return. As the people that do not hire a tax professional, may not be aware of all they are entitled to, they obviously do not claim it and no government is willingly going to pay it if it isn’t actually claimed, even if someone is entitled to it. All too many people think why bother as every year it is the same thing but every year they could have been missing out on a refund which they were entitled to. It is of course true that for many of us, very little changes except perhaps the actual income tax rate but there are benefits which are often over looked such as maternity benefits or benefits for children’s education. There may even be some benefits if you had been sick for part of the year. For this reason, it is probably advisable for someone to consult with a tax professional at least every couple of years or so when, it may even be possible to make a late claim for earlier over payments, if any were made.

Although income tax accounts for a large portion of a governments incoming revenues, other taxes often pay an equally important role and these may include business taxes, import and export duties and of course sales and purchase taxes. Some people take the view that any income taxes should be small and that to replace that, purchase taxes should be raised. The reason why people believe this to be the best idea is because at least then, they will have the money available to choose what they buy and therefore pay tax on. Although this may seem like a good idea for someone who is employed with a reasonable wage, it is not such a good idea for someone that is unemployed or someone who earns very little. Those people will pay very little, if any income tax and so reap no benefits from a lower taxation rate on income but will suffer by having to pay higher prices for goods they may need. Therefore there is very little chance of any government being able to please all the people and so they must try and please what they think is the largest number of voters. One form of taxation or another is necessary for a government in order that they can pay public workers, the military and meet any infrastructure repairs which are needed. A government can though, opt to enforce higher tax rates in order to make infrastructure improvements and that again is something that the people may be for or against in differing numbers.