The difference between national income and disposable income is the amount of taxes collected.
Tax compliance refers to both governmental acts and human behavior. A tax is a mandatory financial charge or other sorts of levy placed on a taxpayer (an individual or legal entity) by a governmental organization in order to finance government spending and different public expenditures (regional, local, or national).
Taxes are compulsory payments made by a government agency, whether local, regional, or federal, to people or businesses. Tax revenues are used to fund a variety of government initiatives, such as Social Security and Medicare as well as public infrastructure and services like roads and schools. To finance governmental expenses, taxation serves its most fundamental purpose. Taxes have been justified and explained in a variety of ways throughout history.
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