Role of the tax
It is thought that a tax includes three roles.
1. The public service that is indispensable for the life of the person
The public services such as a road and education, the police which a country and local public entity arrange make life of ours comfortable by security. The tax becomes the source of funds of this big role.
2. Redistribution function of the income
There are a person rich economically and the person who are not rich in the world. Such an economic difference sits on distemper and sometimes a riot may happen. It is a role of the taxes to evade it.
By progressive taxation of an inheritance tax and the income tax, we collect a tax from rich people and pay more social security to the person who is not rich.
By such a structure, social wealth will resolve it from the rich layer to the layer that is not so.
3. Adjustment function of the economy
It is one of the big roles that the tax serves as to regulate economy. The automatic stabilization function of the economy when is good, prevent overheat of the economy by drawing up fund. However, it is preferable to stimulate economy by supplying a fund at bad time of the economy.
