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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 federal government levies payroll taxes on wages and self-employment income and uses most of the revenue to fund Social Security, Medicare, and other social insurance benefits. Payroll taxes have become an increasingly important part of the federal budget over time, as the chart below shows.