Tax is easily defined as a financial charge levied upon paid professionals, organizations and other legal entities by a governing body. Taxes are of two types i.e. direct and indirect tax. While they are mostly paid in money, taxes can sometimes call for a labor equivalent. Taxes are not voluntary contributions but are enforced donations imposed by the legislative authority to fulfill important purposes.
The four main purposes of taxation are known as the four R's namely revenue, repricing, redistribution and representation. Taxes collected by the government is mainly used to construct public utilities like roads, hospitals and schools and spent on the military forces. It is also used to fund other government functions like legal systems and market regulations. The second use of tax is repricing on certain products to influence the total consumption. Tobacco products and carbon fuels are levied with heavy taxes to discourage the overall use.
Taxes are also used to redistribute wealth in the society. The higher taxes charged from affluent masses is in turn used to provide facilities for the poorer sections. Tax is also used to represent accountability and better governing qualities.
There are several types of taxes like income tax, corporate tax, capital gains tax, property tax, social security, value added tax, sales tax, inheritance tax and excise duties. With the numerous types of taxes, calculating your income and total tax amounts can become confusing. Thousands of people seek help from professional tax firms that calculate the total tax as well as returns, exemptions and other important details that need to be considered. | 
