Opinions are divided on whether laborers’ total salary should be kept all for themselves or parts of it should be contributed as tax. I agree with the latter statement given that this amount of money can be considered as a reserve for society such as public infrastructure investments and welfare programs.
Some people may argue that they should be allowed to retain all the money they earn since this benefits their life financially. To be more specific, if tax was not levied on personal income, people would have more money for consumption and savings. This makes sense, especially for those who are underemployed, because workers earn wages to not only reproduce their labor power but also feed and raise their children, who are not in the labor force at that time. In addition, on a societal level, a greater amount of savings and consumption would progressively foster supply and demand simultaneously, hence motivating the national economy. Satisfaction derived from better life qualities would also proceed the society in the same way.
Although this line of reasoning may sound logical enough to justify tax abolishment, it shows an overpositive vision without considering the governmental expenditure for the welfare of society. This includes the construction and improvement of public infrastructures such as transport systems. Admittedly, commuters have already paid for their seats, but it is obvious that they should also pay for the repairment of some road impairments, like potholes. Besides, given that the natural rate of employment may affect every worker, tax imposed on income can be used later for these unemployed, as well as other disadvantaged people, under the form of insurance schemes. These examples have clearly underlined that tax contributed by laborers is also beneficial to people, but in a more macroeconomic and indirect way. In conclusion, I strongly believe that people should not shelter their income by keeping all the money they make. This is because a reasonable rate of taxation would enrich the government budget, serving for the quality of a nation.