Business Finance and Arithmetic — Entrepreneurship STD 11 Commerce — Question

Our tax system is based on our “ability to pay.” The more money we earn, the more taxes we pay or if we earn a small income, we pay less taxes. Tax payment is also required by the law. The government needs money to operate, and taxes are a way for it to get this money. Money goes to fund many different types of programs. It may be used to fix roads and bridges. It may be used to pay for the military. It may be used to help your own education. It means taxes are paid to help the government to sustain it self.