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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...
With a carbon tax, the cost of most consumer goods would rise. And, because lower earners spend a larger share of their wages on power, transport and food, their pocketbooks will take the biggest hit. What would the government do with the revenue? Supporters of the plan say increasing the cost of energy doesnât have to hurt working families.