Every time I look at my paystub, it seems like the list of taxes and fees doubles in size. Maybe it’s due to the fact that the deductions listed seem mysterious and I never know what any of them are, but I’m regularly surprised by the amount and type of taxes I’m required to pay.
I don’t know anyone who likes the idea of taxation—the history of surly taxpayers extends for thousands of years. Since governments have taxed their citizens, people have been decrying tax collectors as crooks and cheats, but what do our taxes really do? They can’t just be lining the coffers of the government, right?
When you get down to it, all our taxes serve a purpose, whether you agree with their application or not. Both state and federal governments need money to fund things like police forces, road systems and schools. Few people, I think, would say that we don’t need those things.
The government also has ways for you to lower or raise your taxes, through various deductions and tax brackets, ensuring that those who directly contribute their money to beneficial pursuits reap the benefits come April.
Educating yourself about the types of deductions and how they’re used might not make paying your taxes any less painful, but it will help you see where your money’s going and, hopefully, give you some peace knowing that your contributions are helping your local and national community thrive.
Image via Paycor Payroll Software.