The Importance Of Tax In The United States

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While all citizens must pay taxes, the details of how taxes are used or where they are mostly taken from compared to other countries are not known by many. When compared to countries like Denmark or Mexico, it is seen that although certain aspects are similar, not everything is the same. The tax system of countries may differ from the government structure, as well as the services that the taxes pay for. Different countries also have different tax rates as a percentage of their GDP, as well as different median incomes, populations, and major resources. Living in the US might make it seem as if the system currently in place is the most important to study, but comparing systems with other countries allows for a broader outlook on things,…show more content…
Denmark works its system a bit differently. The taxes are broken up into different types of taxes, each with their own requirements to be qualified for. Some of these types of taxes are taken from the entire income, while others are taken from certain parts of the income. Some types could be entirely deductible based on many factors of the taxpayer's life. Denmark also has taxes Mexico’s taxes are also progressive with percentages that range from 1.92% to 35%. Mexico also offers some different types of credits and deductions.
The U.S. tends to get most of its taxes from Income/profits, and Social Security, and a decent amount from goods and services. Denmark, almost entirely gets their taxes on income/profit, and goods and services, having very little come from Social Security and property. Those that do come from goods and services (which is why Denmark is also recessive) are known as VAT, or Value Added Taxes. The way this tax works is that anytime a product gains value, it is taxed. Mexico is a little more even in its taxes, as it gets almost equal amounts of taxes from income, Social Security, and goods and services. A good percentage (around ⅔ of the budget) of taxes spent in the U.S. go to mandatory spending, which includes things such as social security, medicare, and food stamps. The rest (around ⅓) goes towards discretionary spending, which includes things such as education, national defence, etc. There are many services that Denmark’s taxes pay
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