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The government with the taxes collected from the citizens of the country pays for government activities as well as pays for goods and services provided to United States citizens and businesses.
Tax revenues are used not only for Social Security and Medicare but also for public services and government operations. Imposing taxes and fees is a fundamental way for a country to generate public revenue and fund investments in human capital infrastructure and the provision of services to citizens and businesses.
Taxes move resources from individuals and businesses to governments pay for public goods and services regulate the economy and redistribute income. Governments use the money to pay for three general types of expenses purchases remittances and interest payments.
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