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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...
The collection of taxes allows the government to provide a number of services critical to society. However, too high a tax rate can stifle growth and give the government too much control over how money is used. Lowering taxes can, in the right situation, have a number of benefits. Most taxes are imposed as a fee of a particular transaction, usually calculated in the form of percentage. For example, the income tax that U.S. residents are required to pay is calculated in terms of a percentage of their total income.