Taxes affect people directly and indirectly.
The general idea is that tax is paid by the public to a government that uses the money to provide services to the people who paid those taxes. There are different tax systems and rates around the world but this is the general idea.
Tax affects people indirectly in that it determines the living standards within a country. Those services such as public education, council service, medical and general assistance could provide a good living standard or a poor one. In this sense it has an indirect impact on the public, as quality of life can be increase or decrease with the aid of tax therefore having positive or negative outcomes on the lives of people.
Further, if these outcomes result in poor lifestyle then it has the potential to force people into unfair situations that cause depression, desperation and anger toward their governments. Many corrupt governments take advantage of taxation systems, they engage in corrupt dealings, fraud, draw unnecessary high salaries or blatantly steel money from the tax fund. Leaders of this sort naturally drive the country into depression, increasing crime, aggression and suffering throughout the nation.
On the other hand, a good outcome that results in increases quality of life results in people that view their government as good, their community develops a greater sense of lifestyle. The latter results in positive behaviour and that then results in productive societies. A good outcome from tax is when the management of that money is efficient and ethical in a way that it benefits the nation.
Those are some examples of indirect consequences due to tax systems.
Taxes affect people directly because itâ€™s money that a person has to pay. Therefore one cannot take their full income as part of their personal budget because they owe a part of it to tax. Directly the impacts can be felt on a large or minor scale.
Some insignificant impacts from paying tax might entail one to save more money, or sacrifices some of their social activities in order to pay their taxes. While on a far more serious note, when cost of living rises unforeseeably, paying tax could through a person into an unfair situation. It may entail them having no money for food, rent, living expenses and provision for family.