The Importance Of Finance And Taxes In Our Society

Many people dislike the word taxes and sometimes finance since it requires you to manage it when you have it. Well yes it is a big problem and a headache for most taxpayers since they do not like getting hounded by the taxes every month. It is quite irritating since you worked so hard for your money only to end up getting it deducted by some taxes and that would result in a lesser money for you. Many have tried evading taxes but that does not end up well for them too. So why are finance and taxes important in our society anyway?

Finance will never go away whether we like it or not. You need to manage our finances so that you can have extra money when you need it the most. Those who spend too much money will end up in the road somewhere without anything on their backs and that is something we need to avoid. Taxes are also important because the government has many projects that need building. They can help our society even though some people do not see that kind of improvement. You might not see it but there are projects out there being done because of your money getting deposited for taxes. Without your money the country you live in might not even exist. With your taxes they can improve and maintain roads, bridges and any public structures they have built. With that in mind, do not complain too much about your taxes, it is for your benefit anyway.

Government Taxes and Allocation with Finance

Taxes are used to circulate money and produce revenue to make a town or city prosper and be progressive. This allowed the construction and completion of many government projects such as road repair, bridges and highway construction. Seeing the people’s taxes being used for the good of the community motivates taxpayers to pay their taxes correctly and on time. Taxes are also used during natural calamities and disaster to provide relief. Relief operations are somehow made possible with the help of the funds gathered from taxes .The townspeople feel more reassured that the city is there ready and prepared to back them up.

Healthcare and unemployment benefits are also provided and gathered through people’s taxes. Medical research, public school funding, public libraries, police and fire protection take huge benefits with taxes. This is why people are encouraged to pay their taxes correctly and cooperate with the government. This also helps avoid having trouble with the authorities in a later date.

Taxes are paid by billions of people all over the world. With that in mind, proper handling of funds is necessary to ensure proper use of the people’s taxes. This is where finance comes to mind. Finance allows for equal distribution and allocation of money in order for them to be used properly. Spending money haphazardly without appropriate planning can become problematic. Government projects are sometimes left on hold or worse unfinished which not only waste precious resources but also time and hard work.

Finance and Tax Essentials

Finance and taxes are interrelated subjects, especially in relation to the economy of a particular country. The prosperity and economic development of a nation will be directly affected to finance and the nation’s collected taxes. A financially stable country is practically stable in all aspects related to trades and business, banking, and other economic activities, and also in the collection of taxes. Financial transactions, import and export, and others, including monetary transactions, are with an imposed levy or tax, and this is what will run the nation’s economy. There may be other income sources that the nation gets, but taxes can be the highest among all these.

Taxes imposed by a particular country can be of different kinds and all of these with a different purpose. For a financial transaction, taxes can also be levied. Taxes can be value added or whatever tax type there is. Financial transaction taxes are of different kinds but each has a specific purpose, although the common and ultimate end is it will go into the country’s finances. Monies from taxes and from other sources will spur the economy of that country and also spur development.

What is to be improved is the efficiency in collection of these taxes. A country with very efficient collection of taxes will become economically stable. This is common among all the wealthy nations in the world, the efficiency in collection of taxes by their governments. This is also observed among the under-developed countries, the inefficiency in tax collection, thus their goal should be leaned towards improving tax collection efficiency.

Finance and Taxes

Finance and taxes goes a long way. Taxes are means to make a city grow by having the sufficient funds it requires for future projects and constructions that can benefit the community. Finance and taxes work hand in hand as the allocation and equal distribution of the city’s fund is important for a city to prosper and bloom.

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Many government projects were made successful with the help of the people’s taxes. Bridges, roads, sidewalks and the likes are made or fixed making travels a bit easier and more convenient. Health care and other financial aids are made possible with the help of taxes. This made caring for the elderly and the children more manageable and stress free.

These are some of the many benefits of taxes. This is why the government urges the people to pay taxes early or on time. This also helps avoid having problems with the authorities in the future. Cooperation is encouraged and the contribution of each citizen will definitely make a huge difference. It should be noted that people are still able to pay taxes even if they are currently unemployed. This is through their daily purchases that have Value Added Tax (VAT) within them. This makes every paying customer tax payers as well.

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Management of large amounts of money is actually quite hard and it’s not as easy as they look. Finance is under the field of economics and courses or related subjects are offered in several universities to help people better understand the trade.

The Relevance Of Finance And Taxes In Your Life

As what most people say nowadays in this era, “money makes the world round”. Actually it is pretty much a very realistic thing to say these days because without it you can’t move forward in your life. You have to earn such so that you can buy your basic needs and pay for services that you also need that you can’t live without these days like electricity and water. This is why you should be studying or you should have some knowledge of what finance and taxes are all about. Without it, you would be clueless on how the money system works and how you can take advantage of it.

finance

Finance and taxes will always have relevance in our daily lives as long as money is around. Finance is the topic to learn if you want to know how to manage your funds and resources and how to use it. It is all up to you how to use money but with the guidance of some good finance tips you can have a better chance of gaining more than spending it all in one go.

Taxes however is a hard subject to tackle since most people hate it when it comes to mind. It is after all something deducted from what you have earned from a hard day’s work. As long as you know how to manipulate it though to your advantage, you can be free of worry from taxes. Just knowing how to manage it will give you better results. With these two topics learned, you may even have better chances of striking it rich.

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Financial Planning to Effectively Deal with Finances and Taxes

If you don’t have enough financial resources, you will surely encounter a lot of financial problems most especially if you don’t have any idea how to properly budget money. For most individuals, money will always be a problem. In this regard, you need to know about financial planning. In finance and taxes, family planning is very essential. This is a very useful approach in identifying your monetary goals after considering several factors which include your risk profile, lifestyles, taxes and a lot more. Financial planning also extends into other aspects of your lifestyle like healthcare and long-term planning specifically related to retirement age. Those in there later years unfortunately suffer from many problems and have a acute risk of mild stroke or other issues, medicines for these issues are expensive. Financial planning for those circumstances is critical for mental wellbeing.

It is very important to plan your finances for you to reap its long-term benefits. This will help you manage your finances. Keep in mind always that along with your regular day to day expenses, you also need to pay regular taxes. In this regard, you must effectively control the flow of money and never allow money to take in control over you. You should plan ahead before spending your money. If you have listed all your expenses, which include the taxes, you should strictly follow what is being listed.

Knowing how to handle money is very essential nowadays. This is due to the fact that most of the common commodities are increasing in prices. You should ensure that your salary can accommodate all your day to day expenses. Your finances and taxes will surely bring financial dilemmas if you allow money to take in control over you. In line with this, proper allocation of finances is highly regarded in pursuing an effective and efficient financial planning approach. Today, you must be very clever in handling money.

 

 

Financial Stability: Its Critical Role

finance-stabilityFinancial stability is defined as a state wherein the financial system which constitutes market and market infrastructures and financial intermediaries has the ability to withstand against financial shocks, thus there will be a decrease potential of disruptions with regards to the process of financial intermediation. A financial intermediation process disruption is a severe case wherein it can significantly mess up the distribution of savings to all profitable investment companies.

The financial system has 3 vital parts: financial intermediaries, financial markets and financial market infrastructures. Financial intermediary companies and other related institutions such as banks, institutional investors and insurance companies. They direct funds from those persons or organizations who to lend or invest money. On the other hand, financial markets are borrowers or lenders. Examples of these are stock exchanges and money markets. Lastly, the financial market infrastructures are settings wherein the financial assets or the money are being passed through sellers and buyers. Examples of these are securities settlement and payment systems. Deep instabilities in the our financial system has been the cause of human suffering around the world. In fact many governments have indicated the rise of mild scoliosis which gets aggravated when people can’t afford preventative healthcare and other risks such as blood pressure, and heart attacks.

A current economy is said to be financially stable or its financial system is on its well desired level if it has the three critical characteristics. First, the financial system should always have a smooth and efficient transfer of funds from money savers to its investors. Secondly, all reported financial risks should be priced and assessed properly. And most importantly, these financial risks should be managed accurately and effectively. Lastly, the financial system should always be in a condition wherein this said system can comfortably be adjusted to any fake or real financial economic shocks and changes.

If those mentioned characteristics are maintained, then there’s no need to worry. However, if these are not maintained, then the financial system will surely crush. It will go in a different direction and become a much less stable system. With these, the goal of reaching financial stability has failed. If you want to be an economist, you really need to have a deeper and wider understanding about the past and present financial status of your country. With it, you can actually trace the main root of the problem encountered by your society in the present generation.

You need to understand all these things if you want to safeguard the current standing of the financial system and in order to sustain the current financial stability of the economy. However, you need to identify and recognize the main root of all financial risks. These risks include inefficiencies with regards to the proper distribution of financial resources from its savers to its investors. The economy of recent has been very unstable and this has caused many older individuals to suffer from high blood pressure and as a result a few of these folks have actually accidentally suffered  massive strokes. Stability in all aspects of life including financial constriubte to the wellbeing of our older population.

Another thing that you need also to consider is the significant mismanagement and mispricing of financial risks. The identification and recognition of financial vulnerabilities and risks is really essential in monitoring and sustaining financial stability. This is what you might need to face if you want to help in establishing a strong financial system through maintaining the economy’s financial stability. If all individuals are being considerate with their actions and there are no reigning corrupt officials, then this is not impossible to happen. A financially stable economy is the main goal of each country all over the world.

Learning How to Calculate Your Own Taxes

Taxes

Taxes—Tax Credits (Flickr.com)

It is important that you keep track of your finances to avoid any unwanted problems in the future especially when it comes to calculating your own taxes. Taxes are dependent on how much you earn. If you are an employee your employer subtracts your withholding tax from your salary. And usually the hired accountant calculates it accurately. But if you become a freelancer or working on your own business you must know how to calculate your own tax so that you would know how much you need to pay. Avoid paying your taxes late to avoid unnecessary additional fees that will be added to your due amount.

There are available tax rates for calculating your regular tax. Make sure that you have entered the right amount and followed the right steps in calculating to avoid paying more than how much you need to pay. You can find an online calculator that you can use to help you find out the right amount of tax you need to pay. Make sure that you have the form that you need to fill up in filing for your taxes.

After calculating your regular income tax there is also the self-employment tax that depends on the nature of your work. The rate that is usually used in self-employment tax is 15.3%. Review your calculation and make sure that all the numbers are correct. You can also find some free tax calculator that will help you in calculating your taxes accurately. You need to spend time in calculating your taxes and don’t do these things in a hurry. Make sure that your focus is just to calculate your taxes before you do other things.

Remember the schedule of filing for taxes which usually falls on April 15, June 15, September 15 and January 15. There are some places that might have an additional day for filing to help the large number of people be able to pay for their taxes. If you find it really difficult to do all these things then you can consider the idea of hiring a bookkeeper or an accountant to do all the calculating for you. It is important that you pay on time and for the right amount. There are a lot of samples that you can use online to guide you in filling up the form that you have.

Take time in knowing all the information that you can gather online or from other sources before you start your calculation. Make sure that you will not make a mistake in solving for your tax. If you know a person that knows or works as an accountant in a certain company, you can consider asking for their help and guidance. After you are able to finish your first tax calculation, you can use this as your guide in your future work. Just make sure that you can file your taxes properly every year. And keep all the forms that you have for your own copy and proof.

How to Balance Your Taxes and Finances

All individuals are obliged to pay their taxes. However, no one will force you to pay much higher taxes if it is possible for you to pay less while observing different means to lessen your financial burden. Moreover, you can surely obtain a huge amount of savings if you will let a professional help you if you need to familiarize all tax regulations.

Taxes and finances, Calculating Taxes Up And Down

Taxes and finances, Calculating Taxes Up And Down—kenteegardin (Flickr.com)

Saving on your taxes can actually improve your dying budget. This will also provide you your preferred financial life without encountering any financial instability. Luckily, there are so many methods you can choose on how to balance your taxes and finances. There are a few simple steps for you to follow on how to lessen the amount of taxes you need to pay annually. You need to actually understand that there are numerous legal ways wherein you can obtain significant reductions on all your taxes without worrying that IRS might inspect your financial condition. Moreover, these few simple tips can be observed easily without the fear of an IRS auditing. You will have a great opportunity for you to balance your finances without sacrificing any part of it.

There are several tax deductions you can certainly obtain when you hire services or purchase goods. However, you need to familiarize all these possible tax deductions so that when the situation will provide you an opportunity, you know what to do on how to obtain it. For example, there are certain inversions such as a type of special savings accounts for those retiring individuals allow them to make some deductions with their income tax to a specific level. With these, you need to analyze all possible scenarios on how you can obtain a huge amount of tax deductions.

The more you have familiarized all possible deductions, the more you will have the opportunity to obtain these benefits if a particular situation will allow you to obtain huge tax deductions. Obtaining a home equity or home loan is much more beneficial compared to personal loans because you will receive tax benefits.

On the other hand, if you are not comfortable addressing all issues related to taxes, you might end up asking some help from a professional. There are so many professionals who can help you with regards to the different processes on how you can balance your taxes and finances through obtaining a huge deduction on all your taxes. Furthermore, these professionals will help you on how to wisely use your spending. With these, you need to ask help from a certified public accountant who is an expert in managing taxes. These types of professionals have lots of ideas on how to deal with the inspecting activity of the IRS.

All of these few mentioned things are very important for you to follow. You need to be very wise with regards to managing finances because if you cannot do so, for sure you will encounter a lot of problems in the future. Keep in mind that bankruptcy is not a good word to consider. Every tax season is always long hours in front of quicken or home budgeting tax software — this results in neck pain … so I stumbled upon this great resource that helped with that.

Tips on How to be with More Freedom in Your Finance and Taxes

Being free from most any obligations can be truly enticing however this is not an offer that will yield a hundred percent positive freedom when it comes to our finance and taxes. Tax laws are imposed and we are individuals who have obligations to comply with these laws. We are also individuals obligated to procure and spend financially. However, there are several ways in which we can indeed be with bigger freedom from such obligations and we can do this through knowing about some helpful tips on finance and taxes.

 

First, it helps if you are up to date with the changes in tax laws. This is perhaps one of the most lethal weapons you can use to your advantage in fighting for freedom in the area of finance and taxes. The constantly changing laws on taxes could help you win some freedom if you are keen at finding the parts and portions which you can use for your advantage. There could be instances wherein a new law or perhaps a loophole in one would help you gain some extra dollars off of your existing accounts, plans or bonds. Be sure that you check with a professional to help you be with a clearer understanding every time a new law or any tax change is implemented.

Another good thing to note is also that if there are certain periods of time which can be better in paying taxes or spending on something such as an investment, there is also a perfect time to harvest all possible loss. We ought to recognize the fact that in life there is room for losses as well and so to get more freedom in this aspect you have to wise up and know when it is a good time to pay for those losses in order not to burn you even further. Take note of the last quarter of every year as this actually presents the best time for getting rid of losses and offset your gains.

Do take note of the things which often calls for an IRS investigation and do everything you possibly can in order to avoid them. It is not only embarrassing to be investigated but at the same time you are only inviting trouble and a greater feeling of being held by your neck with this when it comes to finance and taxes. Some of the things to avoid include under reporting your annual income and yes, even the misuse of home office deductions. You should understand full well what the terms have to say about these cases in order for you not to have a misconstrued notion that these things will not invoke IRS investigations. If you are having difficulty in understanding these things, then it may be best that you consult with an expert on finance and taxes.

The road towards a freer financial life is to be with as much understanding and “updating” as possible. Your finance and taxes play significant roles in providing you with a more peaceful life so do not take these things lightly.

Secrets You Should Know about Dealing with Finance and Taxes

Taxes

To deal with finance and taxes is one of the toughest parts of life whether you are an ordinary citizen or one who makes millions of dollars a year. There are several taxes to be paid, some hidden while some may be direct or indirect and with a bad hand at handling your finances you may be in for a really tough life. Yes, it is necessary to have taxes as the government can’t completely suffice for every possible need. Still, it can’t be helped by the ordinary “Joe” to question how he is to survive the issues concerning finance and taxes.

Wouldn’t it be grand if you can somehow find means to enjoy a life lived with lesser worries about finance and taxes? As you can definitely do so without totally eliminating these elements, at least become more aware of some things you can do to reduce taxes and be with better financial standing. Since taxes are such a regular expense it pays to use software to track and monitor expenses. I’ve often thought that the pain behind my eyes were related to hours spent in front of the computer inputting receipts and other tax related information. Here are some tips you can use with regards to finance and taxes:

• Learn about employing your children – If you own a company or business, you may want to know about how hiring or employing your own children into the company can help reduce taxes or expenses. By employing your children in a business or company that you own, paying for them through their salaries come as fully tax deductible. This should help in a way so make sure you do not forget about this art when your children become ready for employment.

• Learn about office expenses deductibles – What could possibly be hidden from most people with offices to maintain is that there are several things which come deductible from your expenses. No matter how small the office stuff you have, they may come tax deductible so it should help you reduce your expenses. Take note of stuffs like desks, chairs, file cabinets as these comes with tax deduction. You may also include business-related trade publications, magazine subscriptions as well as charges like atm fees and credit card fees.

• Office parties qualifying for deductions – you should know about the possibility of holding events or parties in the office and claiming for deductions for it.You can find out more about them through the link.What you need to do is to simply ensure that all employees are invited in order for you to qualify for this credit. As for private business events meant to cater to clients or business partners, you are in for even bigger deductions. Such events can give you u to 50 percent of deductions.

Imagine more possibilities of saving and dealing with finance and taxes if only you are more aware of them. As someone working, whether you own the business or company or simply work in one, it should be your lookout to know about these matters. This could positively affect your finance and taxes so make sure that you will be able to deal with them in the most effective manner. It matters that you take charge of your finances and taxes well because it significantly plays a role in the quality of living you enjoy.

Practical Tips to Reduce Tax

Packed lunch, Henry\'s Lunch 1-14-10

Packed lunch, Henry's Lunch 1-14-10—Kelly Sue (Flickr.com)

Before you hire a personal accountant to balance your books, think of all the practical things you can do to avoid taxes from piling up and wreaking havoc on your finances. Some of them are no-brainers, and some require a bit of research. The important thing, though, is to do something…and do it now.

Pack a lunch instead of ordering or eating out. Don’t want those value-added taxes and service charges ruining what’s supposed to be a yummy meal? Well, do what you did back in elementary school—pack a lunch! Not only will you get the kind of meal you want (and if you’re vegetarian, there’s less chance of becoming vexed, explaining that fish is not vegetarian food), but you’ll also save up on hidden taxes that normally come with restaurant or takeaway food.

Take advantage of the office car pool. If you office provides a company car, take advantage of it during business trips to save up on your own gas and car maintenance. You can also ride the company car with your workmates if you live in the same area, so you can cut down on the expenses and hassle of everyday commute and traffic.

Compile your tax deductible expenses. Self-employed people can claim tax-deductible expenses, including purchases for office supplies, gas, travel, and in some cases, even meals. Don’t throw out those receipts. You’ll need them the next time you file for tax.

Consider working from home. Not only will you save up on gas, commute money, and maintaining an office, but setting up a home office could mean writing it off when filing for taxes. It’s a bit tricky, though, because one of the requirements would be to really have a home office, not just a corner of the house where everyone in the family has access to it. You have to determine the percentage which your office takes up from your entire home, then determine the mortgage percentage it eats up, plus utilities and maintenance. That’s when you can come up with your tax deduction.

Get tax credits for any renewable source of energy. If you installed solar panels to help heat your swimming pool, or put up path lights that run on solar energy, then you can gain tax credits for them. This “green” devices that make use of sun and wind to power them can give you the kind of tax credits that reduce your tax bill dollar for dollar. Talk to your local tax man about installing or using any kind of device, appliance, or gadget which makes use of renewable resources within the year to see if they are in the eligibility list, and if they qualify for full tax credit.

Taxes Are Taxing: A Poem

Taxed, taxes

Taxed, taxes—bsdfm (Flickr.com)

I should be relaxing

but taxes are taxing!

 

Each single computation

invites my vexation,

It isn’t any fun, nope.

I can’t even cope

With the amount I must pay

for my 401 K.

 

The figures I must tally

are making me doolally.

Oh, and this alimony for the ex?

I wonder if it’s a hex?

Is it any wonder when I file status

I just want to go on hiatus?

 

If I may be so bold,

I am Head of Household.

But it is this status quo

That is giving me woe.

 

Every time I think of FICA

I feel my knees getting weaka’.

 

I wish the IRS would know

That I only earn so-so.

And I wish that I can

Tap my HR 10 plan,

even though I’m not yet sixty

and doing so would be risky.

 

What to do, what to do

there’s Medicare, too.

And it makes me blow a fuse

that they’ll tax my orange juice!

 

Every move that I make,

every breath that I take,

every cake that I bake,

every leaf that I rake,

has a corresponding tax.

 

So I really can’t be lax.

Gotta compute, gotta write

and get this thing right.

Otherwise I’ll be fined

and be more in a bind.

 

-TF Garcia

 

 

Would You Pay More Taxes for Your Food?

Do I Have Enough Junk Food Yet

Do I Have Enough Junk Food Yet—JoeInSouthernCA (Flickr.com)

 

 

 

 

 

 

 

 

 

A group called Americans Against Food Taxes came up with a video explaining why they are against taxing of certain food. Under the guise of wanting healthier diets, some grocery foodstuff have become candidates for heavier taxing. The bottom line of this video is: leave our grocery list alone!

Another video shown below underlines the fact that, when food and beverage taxes are implemented, it can make saving up significantly harder for American families struggling against the current state of economy. What may seem like mere pennies for every taxed beverage such as juice drinks can add up and amount to the kind of savings needed for more important things.

And while many might argue that giving up these beverages can help with savings, the reality is that additional taxes, no matter how insignificant or trivial they may seem, can hurt a lot of families. A better alternative would be not to have these taxes altogether, and still maintain the freedom of choice for all consumers.

Lately I’ve been thinking about los angeles web design company and how they were so helpful in creating this website. Because of them, we are writing about the enormous tax burden common people face daily here. Communication and free expression of ideas is so important connect theory help to facilitate that. If you’re considering any internet related activities consult them. In matters of taxes they really understand how to use commerce laws to provide the best tax shelter.

 

The Truth About Hidden Taxes

Hidden tax, Hidden fees and taxes

Hidden tax, Hidden fees and taxes—paulswansen (Flickr.com)

Hidden taxes are explained in this PDF file called Hidden Taxes What Is Your True Cost. It illustrates the ways taxes can be hidden:

  • payroll taxes your employer pays to cover Social Security, unemployment wages, etc.
  • consumer taxes on products and services, including surcharges, fees, levies, dues, licenses, tolls, etc.
  • travel taxes including surcharges for gas, airline ticket fees, airport fees, departure fees, arrival fees, car rental fees, hotel fees, meal fees, etc.
  • sin taxes for gambling, smoking, soda, alcohol, firearms, and ammunition, supposedly to deter people from overdoing these things largely considered “immoral and unhealthy”
  • educational taxes, usually filed under “miscellaneous fees”

Notice how there are many “etceteras” in these examples of hidden taxes. This is largely due to the fact that many provisions (or lack thereof) of hidden taxes are left unnoticed by consumers. We just assume that we’re paying for a product and service as they are, no more, no less. Unlike the taxes that are obvious on our receipts, tickets, stubs, and other proofs of purchase, hidden taxes can make it hard for us to determine just how much a product REALLY costs on its own without the additional burden of extra, unjustifiable taxes.

The video below from the Center for Freedom and Prosperity Foundation tries to explain why a value-added tax would be “a dangerous money machine for big government.”

Tax Transparency As Demonstrated By Norway

If you want to know what tax transparency looks like, look at Norway.

Since the 1800s, Norwegians are required by law to provide the most minute details of their annual income, so that they can be publicly released every October in a thick compilation at the local tax office for anyone to read.

The Norwegians believe that this supports the idea of social democracy, though of course, it is prone to unique cons, as can be expected when details of the neighbors’ financial status are so open and available for viewing. Every time the publication of the taxpayers’ figures draws near, there is a sort of frenzy among people to check out who makes how much, and who is on the brink of bankruptcy.

The question is: is America ready for this kind of tax-fueled entertainment (for lack of a better term)?

Tax writing, IRS 1040 Tax Form Being Filled Out

Tax writing, IRS 1040 Tax Form Being Filled Out—kenteegardin (Flickr.com)

There is understandable concern about how criminals can use the taxpayers’ figures to their advantage, as they could easily handpick their next targets using such exposed and easily available resources. There can also be controversies as media typically uses resources like these to come up with sensationalized news about such things as “The Most Eligible Bachelor/Bachelorettes In Town” or some such thing.

Tax transparency is a good thing, but some Norwegians think such an overt way of publishing it needs close reviewing and revision. In the case of the United States, transparency should really be about those seeking office being honest with their financial dealings, and avoiding accusations of graft and corruption in the process. If this sort of transparency would give a politician a massive stroke then I don’t know what would.

Different Financial System

Re Thinking Finance

What is the first thing that comes in to you mind when you hear the word “finance”? Probably money or bank, profit, capital, loan and many more.

“Finance is often defined simply as the management of money or “funds” management. Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created for transacting and trading assets, liabilities, and risks.”
Wikipedia

There are two different systems in finance: Public interests and Private Interests depends on the market and the people that utilizes them. Examples of these are insurance companies, banks, brokerage, government and firms which develops transaction businesses and resources as well.

Watch this Video on Youtube:

If you don’t know anything about this then think of it this way. When you’re working in a company, they are deducting a monthly income tax return right? That will go to the goverment right, so that’s one example of how it works.

Money makes the world go round.

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