Final answer:
Failure to pay taxes may lead to government action such as property seizure. Fair taxation ensures everyone pays their share, and inheritance taxes debate whether wealth transfer should be taxed. International coordination, like the G-7 agreement, seeks to prevent tax avoidance and maintain fairness.
Step-by-step explanation:
Taxation is an essential aspect of a government's ability to fund services and maintain public infrastructure. If someone became a millionaire, purchased five mansions, but forgot to pay taxes, the government would be justified in taking action, including seizing those properties to settle the tax debt. To make this scenario more acceptable, one must recognize the importance of fair taxation and the individual's responsibility to pay taxes. Taxes should be fair, and everyone paying their proportionate share is generally seen as the most equitable system.
In regards to inheritance taxes, there is a debate on whether it is fair to tax the wealth that individuals intend to pass on to their descendants. While some argue that hard-earned assets should be transferable to family members without considerable taxation, others contend that inherited wealth contributes to societal inequality. Inheritance taxes often target large transfers of wealth to ensure that this form of income is taxed similarly to earned income, maintaining a balance in the tax system.
It is also important to consider how tax policies are coordinated internationally to prevent tax evasion and promote fairness. The agreement by G-7 nations on a global minimum corporate tax of no less than 15 percent is an attempt to prevent companies from shifting profits to lower-tax jurisdictions. This coordination aims to ensure that corporations contribute a fair amount to the countries where they operate. Failure to pay taxes on earned income can result in fines or jail time, emphasizing the necessity of fulfilling one's tax obligations.