Page 574 - Introduction to Business

548 PART 5 Finance

Giving
Americans are among the most generous people in the world, and Internal Revenue
Service statistics reveal that low-income Americans give as much to charity as those
in high-income brackets. The recipients include churches, schools, and other not-
for-profit organizations that provide valuable services to the society at large. By
including planned giving in your budget, you are able to help others on a regular
basis and enjoy the personal satisfaction of knowing you can live on less than you
earn. Moreover, research has shown that people who focus on the needs of others
are happier than those who think only of themselves.

Repaying Debts
In general, debt should be avoided, but it is sometimes necessary to finance the
purchase of a major item such as a home or a car. If people could not be trusted to
repay their debts, then there would be no credit available and the whole economy
would be drastically affected. Repaying your debts helps ensure that credit is avail-
able to others and allows society as a whole to enjoy a higher standard of living.
Repaying debts enhances your credit rating and ensures that credit will be available
if needed in the future.

Paying Taxes

Western tradition holds that citizens should support legitimate governments and
bear a portion of the overall social responsibility. Without tax revenues, govern-
ments could not function, and programs such as national defense, aid to the poor,
maintenance of the transportation system, public education, and repayment of the
public debt would all come to a halt. Society benefits from all these government
activities, and you benefit from meeting your social responsibilities and fulfilling
your ethical duties. On the other hand, failure to pay the proper amount of taxes
may result in penalties and interest charges, and tax evasion is a criminal offense.

An adult volunteer plays a game
with students in a Head Start class
in Hopkinsville, Kentucky.

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