How does an increase in taxes affect the lives of the poor rather than the rich
Money collected from taxes plays an important role in running the economy of any country. A tax is levied on all good used by government of a country and the money raised is used to turn the government. But the burden imposed on the people in the form of taxes affects the lives of the poor more than the rich.
This tax is mainly levied on the people who buy it and mostly on the basis goods that are consumed a lot. Form the money collected the through taxes, the government spends all of its expenses and spend the royal lives of itself and its people.
It is often seen that this tax is paid by the rich people, but if seen , the burden is more on the poor than on the rich.
For Example:
A shopkeeper who buys goods from the company and sells them on, the buyer will actually pay the tax. If the government imposes a tax on a manufacturing company, the more the company will increase the price of the product, and when the price of the product increases, when the poor person buys the product, he will have to pay the tax which was imposed on this company.
When the government announce a tax increase on anything, it says that the burden will not fall on poor, but in reality it is the poor who seem to be affected. The income of the poor people is paid to the homes of the rich. Taxes are a measure that the government quietly puts on the pocket of the poor.
The poor are still deprived of their basic rights despite paying taxes on everything. A tax hike does not create more deprivation in the lives of the rich but also deprives the poor of their basic necessities.
There are many types of taxes in the country like if someone wants to buy a property, on it. Order something from another country or sell something in another country, after that general sales tax on everything and so on.
Like electricity, gas and petrol also have to pay tax. The money collected from all these taxes is used by the government to run its national system, but along with the national system, a large part of it seen to be wasted on the royal expenses of the sitting government in the country.
When the price of anything increase, the reason for the increase in tax is because of the increases in taxes, so the poor whose income has not increased but it has become difficult him to buy that thing. Due to increase in price, the manufacturing company does not suffer any loss, but the poor person who buys it is affected because there is no increase in his livelihood and burden on his pocket may be increased and he may to deprived of the basic need of his life.
The increase in tax is heavy on the pocket of the poor and they deprived of their basic needs. An increase in taxes first make necessities more expensive and people are forced to stop using them. People who have more income pay less than and live better lives. The government provide few benefits to the poor tax payers while its policies provide more protection to the rich.
This creates instability in the society and the rich live better on their money than the poor and the poor are unable to fulfill their basic right. Taxes undoubtedly affect the live of both the rich and the poor, but the rich are loss affected because of their greater resources, while the poor are affected more.