People tend to have strong views on taxes and how they should be administered. The history of taxation and money is full of conflicting views on the subject, so this subject is nothing new. However, these views have ultimately helped craft how our systems work today and where they will go in the future.
Originally, people traded products that were assumed to have a similar value. However, determining prices this way was difficult since people had to trade between very different products that may or may not have been available at the same time depending on harvests and other variables. This led some societies to look for a way to establish standard units of value that could be traded regardless of the product or time.
The leap to money from this conception was not very hard to make. Some early societies recognized that valuable goods or commodities could be a stand-in for direct trades. Gold, silver or even shells served this purpose in different societies. Certain producers marked them to prove their origin and value. Governments soon realized that they could serve as trustworthy authorities and began produced and distributing their own currencies.
Now that people could keep value for longer periods of time, the idea of the government doing the same arose. Public works required funds and getting taxes from the public was a means to that end. The Egyptians did this, the Greek states funded their battles by taxing people and the Romans set up a way to collect taxes on the city level and move them to where they were needed most. Many European countries would later use this model for their own systems.
Over time, the public's expectations from governments have increased greatly. Alongside this development, tax regimes have become more complex and pervasive. To varying degrees, governments provide funds for retirement, unemployment, disability and medical expenses for the poor. Instead of taxing a few commodities, governments now levy taxes on imports, exports, sales and capital gains, among other things.
For many people now, money is largely a number in a bank account that goes up or down with payments going in and out. Governments recognize this and are beginning to offer electronic services in a variety of areas, including tax services. Online services range from simple FAQs to complete filing online. This varies from country to country.
The issue of how best to mobilize the riches of a country is a never-ending source of debate. Maybe this is how it should be. By constantly reviewing the history of taxation and money, we can make adjustments to our systems to make them the best they can be.
Originally, people traded products that were assumed to have a similar value. However, determining prices this way was difficult since people had to trade between very different products that may or may not have been available at the same time depending on harvests and other variables. This led some societies to look for a way to establish standard units of value that could be traded regardless of the product or time.
The leap to money from this conception was not very hard to make. Some early societies recognized that valuable goods or commodities could be a stand-in for direct trades. Gold, silver or even shells served this purpose in different societies. Certain producers marked them to prove their origin and value. Governments soon realized that they could serve as trustworthy authorities and began produced and distributing their own currencies.
Now that people could keep value for longer periods of time, the idea of the government doing the same arose. Public works required funds and getting taxes from the public was a means to that end. The Egyptians did this, the Greek states funded their battles by taxing people and the Romans set up a way to collect taxes on the city level and move them to where they were needed most. Many European countries would later use this model for their own systems.
Over time, the public's expectations from governments have increased greatly. Alongside this development, tax regimes have become more complex and pervasive. To varying degrees, governments provide funds for retirement, unemployment, disability and medical expenses for the poor. Instead of taxing a few commodities, governments now levy taxes on imports, exports, sales and capital gains, among other things.
For many people now, money is largely a number in a bank account that goes up or down with payments going in and out. Governments recognize this and are beginning to offer electronic services in a variety of areas, including tax services. Online services range from simple FAQs to complete filing online. This varies from country to country.
The issue of how best to mobilize the riches of a country is a never-ending source of debate. Maybe this is how it should be. By constantly reviewing the history of taxation and money, we can make adjustments to our systems to make them the best they can be.
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