how do a farmer give something to the government though he isn't able to give income tax?
kallol
2006-04-11 00:08:18 UTC
contribution of those low-incoming people who cant give income taxes.
Four answers:
shamilakber
2006-04-11 03:42:36 UTC
Well, income tax is not the only way in which governments collect revenues. There are many other taxes, lets say, on consumption of goods by farmer. He must have consumed some goods or bought fertilizers, pesticides or diesel for his tractor. All these includes some sort of tax. So, if people who do not come in tax net since they are poor, they are still contributing towards the government revenues.
Above all, farmer provide food to the market. He contributes towards national income of the country. He produces those goods which have both forward and backward linkages to other sector of the economy. For example, if he produces cotton, this cotton will be used to make cloth. So, not only he earns but also open avenues for others to earn money and to increase economic activity.
christian
2006-04-18 04:04:49 UTC
I didn't look this answer up... but I believe a farmer helps the economy when he invest in equipment, hires help, and sales or give his produce. See, although the farmer... himself might not pay taxes... in the United States Of America taxes are ideally paid each time the dollar exchanges hands. I don't quite have the full picture so my answer is possibly missing a lot of detailed information. See, money made in the honest ethical market will always stimulate the economic system positively.
coolbuddy
2006-04-18 06:34:18 UTC
farmer can contribute by production of crops & also contribute by consumption & paying indirect tax.
saj_sajml_sajpkd
2006-04-11 08:33:21 UTC
a farmer can cotribute to g.d.p by icreasing production.he
can help agovernment to be self reliant in food production
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