What is the most important incentive of a taxation strategy?
There are many reasons why our government taxes us in so many ways. We have to pay income tax on the federal and state level, property taxes, estate taxes, sales tax upon every transaction, sin tax, and hotel tax. All of that added up is quite a lot of money we have to pay to the government. The reasons why we are taxed are very simple. First and foremost, the government needs to raise as much money as they can so they can fund all departments, social programs, and public facilities. These departments and programs include education, energy, civil justice, and more. Health care, social security, and social infrastructure must be maintained, so tax money help do that. Another incentive of taxing is the government tries the best they can to decrease the wage gap between the rich and the poor, by taxing the rich more and the poor much less.