Taxes are essential instruments to order coexistence. Without taxes there is no order, no politics, no democracy, no solidarity without taxes, barbarism triumphs. That is why advanced democracies develop principles-based tax systems, give taxes the status of a law, demand maximum transparency from governments, and provide citizens with a reasonable tax education so that they can penalize governments that lie or fail to fulfill their tax promises. 

But we must recognize that our tax education is regrettable. Here they promise to lower taxes to win the elections and the formula works. Something is wrong between us. To ignore that we have a fiscal pressure 8 points of GDP (80,000 million euros) below the European average is serious. It is also important to be unaware that fraud in corporate tax, VAT and other taxes explains this income deficit. Not perceiving that the promised tax reduction is later compensated, totally or partially, with increases in other tax concepts, is disorientation. Not being aware that lowering taxes equals fewer services or the same but more impaired, too. And this helps to understand why we are an impoverished and awkward country. Make a visit to www.taxfyle.com/income-tax-return-calculator for the best results now.

By Theory

Theoretically, taxes should generate sufficient, fair, transparent income based on the economic capacity of the taxpayer. The indicators that measure this capacity are income, wealth and consumption. But the concept of income underwent radical changes at the end of the last century, the patrimonial taxation (possession and transmission) is diluted or outside the current systems, while the taxation on consumption is considerably reinforced. These changes come from neoliberal thinking and were applied in the European Union, with more or less intensity, by conservative and social democratic governments.

The Real Case

In our case, the result is known. Personal income tax is already a tax on income from work. The other incomes are diluted. Corporation tax is today a black hole due to tax relief, avoidance and evasion. Property taxes are eliminated or impaired (equity, equity transfers, inheritance and donations). And all this is compensated by consumption tax (VAT, excise, environmental, rates, prices and copayments), thus generating inequality and a fragile, weakened public sector with little civilizing capacity. Taxes are important because they participate in the distribution of the surplus. The income from labor, capital and taxes respond to different interests, their distribution is conflicting, but essential to know the reality that surrounds us.

What You Need to Do

Tax season has arrived and whether you decide to go to a professional to make your return or decide to use a program, it is always good to make sure that you do them well and on time. Regardless of the route you choose, in this article we will discuss what you should take into account when processing your taxes. Remember that you have until April 15 to file your return.