The common man bowed down to all the taxes

As common men, we all want to earn and live a comfortable life. Some of us even want to save and invest so that our future will be secure and some of us wants to live happily without even thinking about the future. Now, this is a personal choice on what you want to do with your money. But the problem is whatever we earn, most of them are taken away from us as a form of tax.

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I get it, tax is a major source of revenue for any government, but it is not like you ask for taxes in each and everything. If I talk about India, we have the largest tax base in the world. But even though after paying this much tax there is no proper social support for the people out there. For the rich paying tax doesn't matter, for the poor they get subsidies from the government but the major sufferer is the middle class. We have to pay the tax for each and everything.

If we talk about the taxes, we have two main categories of tax i.e. Direct Tax and Indirect Tax. Direct tax is fine, where we know we have to pay a certain amount of tax to the government. But the problem is Indirect tax, we have to pay the indirect tax on each and everything we buy or sell. Direct tax is like income tax whereas indirect tax is the tax imposed by the government on producers or intermediaries. But indirectly the burden always falls on the consumer.

Some of the main taxes are:

1. Income Tax - This is the tax we have to pay to the government on any income we earn. It also depends on how much you earn. If you are earning more, you have to pay more tax but if you are earning less, you have to pay less tax.

2. GST - This is the Goods and Services Tax which we have to pay at the time of consumption of goods and services by the consumer.

3. Capital Gain Tax - This is the tax we have to pay for the capital gains in the case of stocks and mutual funds.

And then there are other taxes like excise duty, customs duty, professional tax, entertainment tax, stamp duty and property tax. And with these taxes, the burden is directly on the common people, so if we earn Rs 100, the effective money in hand will be only Rs 50. And the other Rs 50 goes to the government in form of taxes.

And this Rs 50 today will not be Rs 50 tomorrow because there is Inflation too. So if you are saving that Rs 50, your money will get reduced by 7-8% next year as there is inflation too. And thus in the end the common man has to bow down to all the taxes we have to pay. In addition to that government is now asking for a 30% Tax as well as 1% GST on Crypto gains too. So in the end there is nothing left in the hand of common people to save and create wealth.

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