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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...
It depends on what government you are asking about. In the United States of America, the Federal government and most states levy and collect income taxes. So do many citieâ¦s.   In the Federal Government, income taxes are levied and collected by the Internal Revenue Service, which is part of the Treasury Department.