Tax policy

Tax policy is a way to help the government get money it needs to run the country. The government needs money to pay for things like schools, parks, roads, police, and firefighters. To get that money, the government sets up a tax policy. This means it tells people and businesses how much money they have to give the government each year.

Different people and businesses pay different amounts of taxes. This is because the government takes into account how much money people and businesses make. The more money you make, the more taxes you pay. People who do not make much money do not have to pay as much in taxes.

Tax policy also means that some people and businesses can get money back from the government. Sometimes, when people or businesses pay too much in taxes, the government will give them some of the money back.

In addition, some taxes help the government pay for specific things like healthcare or transportation. This is why when people buy things like cigarettes or gas, they have to pay an extra amount of money. That extra money is called a tax and it helps the government get money to pay for those things.

So in summary, tax policy is a way that the government gets money to pay for things that help our country. It also makes sure that people and businesses who make more money have to pay more taxes, while those who make less money do not have to pay as much.