Role of Taxation in Modern Societies (Essay Sample)

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Taxes
Taxes are payments that citizens or groups of citizens must make to their respective local, state, or federal governments. Infrastructure like roads and schools, government initiatives, and programs like Social Security and Medicare are all financed using tax income. In economics, taxes are paid by the party responsible for incurring them, whether that party is the taxable entity, such as a corporation, or the buyers of the goods produced by the firm. Among the various taxes that must be considered from an accounting perspective are payroll taxes, federal and state income taxes, sales taxes, income taxes, and corporate taxes.
Corporate taxes
An organization's after-tax earnings are subject to a tax known as a corporation tax. After subtracting the cost of items sold, selling and marketing expenses, general and administration fees, depreciation charges, research and development costs, and any other operational costs from the revenue, the often taxable profits are what is left (Stantcheva & Stefanie, p. 2330). The amount of tax due for a company is calculated using its taxable income, which is obtained by subtracting its payment from its cost of goods sold (COGS), general and administrative expenses (G&A), sale and marketing fees, research and development costs, depreciation, and any other operational costs. Corporate taxes vary from nation to nation; some are so cheap that they are called "tax havens." The amount a firm pays in taxes, or the effective corporation tax rate, is often more important