In many nations, a small proportion of people have significantly high yearly incomes. Some people think that these people should pay a much higher rate of tax. I strongly agree with this statement. This essay elucidates the benefits of the same.
Income tax directly contributes to the development of a country. This tax is used for the construction of public infrastructure like roads, metros, railway lines, airports, and bridges. These assets are essential for the functioning of a modern society. Individuals who earn high annual incomes should have higher contributions to income tax compared to those with lesser incomes. This practice would reduce the financial burden on families with low incomes. Moreover, it would reduce financial disparity and ensure fairness in society.
The tax collected by the government is also used to uplift society. For example, the mid-day meal scheme for children at schools, mandatory education for girl children, and subsidy on fertilizers for farmers. The money collected from taxes is of paramount importance for the overall growth of a nation. For instance, every year, a huge sum of investment is done on improving the defense system. This is crucial for maintaining the security of a country. Additionally, some part of the taxes is utilised for space research and improvising healthcare facilities. If everyone in the country pays equal tax, there would not be enough money to look after all these expenses.
To conclude, I firmly assert that people with high incomes should pay higher rate of tax. This practice would ensure every citizen leads a quality life and promote societal growth.