Taxes:

Question

Taxes:

Quizplus · Accepted Answer

Taxes are compulsory payments that citizens have to make to the government. These payments are not directly related to the benefits received from government goods and services. For example, a person who pays income tax may not directly benefit from the construction of a new road or a bridge. Taxes are used by the government to finance various activities, including the provision of public goods and services, infrastructure development, social welfare, and national defense. They can also be used to achieve certain economic goals, such as reducing income inequality or discouraging negative externalities. Taxes can have significant effects on economic incentives and behavior, as well. Private firms do not use taxes to raise revenue, as taxes are collected by the government.