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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...
Thus the prime purpose of taxation is believed to be revenue. The money that is raised from various taxes is spent by the government for the construction of schools, roads, hospitals and also for other development causes. The national government also spends the earned revenue for the justice system and regulation.