Why do we pay 10% of our paycheck to the government for taxes, and why/under what circumstances do we get it back in tax returns, or have to pay more in tax returns?
In: Economics
For a government to function it needs tax revenue. There are many ways we could pay these taxes, but governments like income taxes because they can be scaled to income allowing them to be progressive, and they are relatively easy to collect.
Whether you pay extra taxes, or get money back, is solely based on if you overpaid or underpaid your estimated taxes throughout the year.
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