What is the Purpose of Filing State Income Tax?

Law requires that you file your state income tax.

Each year, most states require its residents to pay state taxes. While people complain about taxes, there are reasons that taxpayers should pay their taxes. Taxes help generate revenue for the state.

Law

Paying taxes is required of taxpayers in most states. Each taxpayer determines his own tax liability. In states with a state income tax, failure to pay your state taxes can lead to civil or criminal penalties, such as fines, incarceration or both.

State Benefits

Income tax provides funds for projects that benefit the state, such as education, health care, parks, roads, building state infrastructure, transportation, corrections and assisting the poor.

State Use Argument

While the taxpayer resides in the state, he is using state resources. He uses the roads that taxes pay for, he uses the health care that taxes pay for. Therefore, the taxpayer should contribute her share to the upkeep of these resources.

References

• Center on Budget and Policy Priorities: Where do Our State Tax Dollars Go?
• Tax Power: The Truth About Frivolous Tax Arguments