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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...
Congress could not tax. The government of the U.S. had to ask the states for money, and the states could refuse. Congress could borrow money, but had no way to repay the money it borrowed. Congress could declare war, but it lacked the power to raise a national army.