Role of Taxation for Economy - Essay Example

Taking security, for example, the state has a responsibility of providing both internal and external security to its public (Committee, 2013). However, this can only be possible if the public participates in funding the state to purchase necessary weapons and also employ disciplinary forces. The benefit enjoyed by the public in terms of services due to their tax contribution is immeasurable. It is; therefore, appropriate to suggest that Chancellor Osborne is right when he relays the state’s perceptive of tax evasion. The Shaban Mahamood of Shadow exchequer secretary, comments on the state of living being higher than the standard expectation. From his comments, it is clear that Shaban expects the state to make the cost of living to that level where each of the citizens living in the United Kingdom can afford it. He has held the state at ransom for not playing its role in reducing the cost of living to its general public.  Shaban’s comments indicate that the state then has all the rights to demand and even place criminal charges to people evading taxation. The reason behind the support of the state is that it will only be in a position to provide the so said services if the public plays its rightful role of paying taxes (Davidson, 2011).

To understand the importance that has been given to tax payment by the UK state it would be appropriate to first explore the contrary. Evasion of taxation or even hiding one’s property offshore has been compared to a criminal act. The state has even gone further to formulate policies that strengthen the taxman. In addition, the people who willingly provide the state with information regarding the evasion of tax by others will be rewarded heftily. As though this is not enough, the UK state has promised to cooperate with the rest of the countries that are fighting tax evasion. In the new criminal act targeting the tax evaders, the state has included harsher punishment, longer jail terms, and double payment of the evaded taxes. Furthermore, the state continues to quote the amount of recovered taxes in the past two state budget years. As was of rubberstamping the essence of paying taxes, the politician has also used the issue in their campaigns. It is clear from Prime Minister Message to the public during his campaign. Moreover, the state has also realized that it is a subject the public opinion with regards to the formulation and implementation of financial policies. Therefore, it has set aside Angara to allow the public to make their contribution with regards to measures that should be taken to seal the taxation loopholes (Walter Sinclair, 2013). It is an indication of the importance which has been attached to tax-paying by the state. Another measure of importance portrayed by the state is control of profit shifting and base erosion, a tax crime practiced by multination companies and business people.

In summary, the importance of paying taxes to both the public and the governments of the day cannot be compared to the contrary. The benefits enjoyed are not only economical but spread further to social and political. Socially, the public enjoys the serenity of not being harassed by the law and politically the state honors its promises to the citizens. It is then appropriate to conclude that, there is a need to honor our role as the public- paying of taxes- if the public services are to be availed by the state.