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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...
Because the United States economy is driven by perhaps the best example of a consumer-based society and a capital-driven citizenry, it is important to understand and interpret what role the US government plays in the operations of our economy.he government, as a bureaucracy, naturally needs some of that money just to stay up and running as well. However, the ways in which particular governments go about spending American tax dollars is most illustrative of what the government's role in our economy is.