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Why does the government need taxes? Answer: The government needs tax because it needs money to pay for hospitals,schools,and community service. In order for the people to have those services, they contribute to â¦ the fund. tax goes towards government spending on public services such as: healthcare, education, public transport etc...
Answer Wiki. Simple. It levies taxes. If tax revenues aren't enough, it issues more debt to pay the bills (interest really is a just another expenditure like any other). The government doesn't really get a direct return on an asset like the military (unless you want to get abstract and call it an investment in not getting invaded).