Taxation

Taxation










When a fee becomes a tax
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Taxes can be viewed as a fee that is involuntary paid to the state in order to continue receiving the public services. In contrast, however, there is a difference between a tax and a fee leading to the question what a really a tax is and what really a fee is?
A tax and a fee do not possess similar connotations as explained in the article ‘A tax is a tax so what is a fee’ (2014, Dec 08). According to the article, fees undergo a different level of scrutiny from the public perspectives. The article describes how fee can be used to indirectly increase taxes of property leading to what is referred to as ‘taxation by a fee as Sipress calls it. The city described in the article was in need of increasing property tax, but from a point of critical view, informing the public that there would be an increment of property tax could have led to conflict in one way or another. So there was a need to call it a fee with indirect affiliation to payment of property tax as the implementation was at a later stage after budgeting thus it would raise concerns from the public.
According to this article, it is worth agreeing that fees and tax have similar connotations because, in the first place, money spent on paying for service such as visiting a park can be termed as a fee implying that it can be calculated, and it is clear. Nevertheless, a tax should be aimed at maintaining the services rendered to the public at optimum levels. With a particular focus on the article, it is worth noting that sewer maintenance, street lighting, and fixing streets all have affiliations with property maintenance. Therefore, the government would do all it can to have payments made to cater for these services including the use of taxes thinly disguised as fees. This would assist in raising revenues from residents without making them technically realize that they are paying taxes. In my opinion, I would,...

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