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Taxes

✨ Collective Money

Taxes are amounts of money collected by public authorities from individuals and organizations to finance services and activities that benefit society. They can be applied in different ways, such as on income, purchases of goods and services, property, or certain types of economic activity.

The rules for paying taxes vary from one country to another and are generally defined by laws. Tax systems are designed to collect resources while taking into account economic and social objectives. Taxes help fund many public services, including education, healthcare, transportation, security, and infrastructure.

They can also be used to support certain policies, such as encouraging investment or helping reduce social inequalities through public programs. However, designing a fair tax system requires balancing different interests, because taxes affect households, businesses, and the overall economy.

Understanding how taxes work helps citizens better understand how public services are financed and how collective decisions influence society.

💡 Did you know?

The window tax. In the 18th century, in England and France, there was a tax on windows! The more windows your house had, the more you had to pay. To pay less, some people blocked their windows with bricks, making houses very dark and unhealthy.

The invisible VAT. Without realizing it, you pay taxes almost every day. When you buy a chocolate pastry for €1.20, about 6 cents go back to the State as VAT (Value Added Tax). This is why on receipts, we often see 'Excl. Tax' and 'Incl. Tax' (All Taxes Included).

The beard tax. Tsar Peter the Great of Russia hated beards because he wanted his country to look like Western Europe. In 1698, he created a tax on beards: those who wanted to keep them had to pay a tax and wear a copper token proving they had paid!