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Government responsibilities
- It defends the country from outside enemies.
- It keeps order within the country (to protect its people) through rules.
- It provides services for its people.
Taxes, yeah, I know
- Governments need money to run their countries.
- Almost every government collects taxes, certain amounts of money from its citizens.
- Why collect taxes?
- to pay for public services (e.g. education, healthcare, transportation)
- to provide protection (e.g. army, police)
- to build insfrastructure (e.g. roads, power supplies)
- to make technological progress
- to change people’s behavior (e.g. putting high taxes on tobacco to reduce smoking)
- to support the disadvantaged (e.g. the poor, the disabled)
- Governments also raise or lower taxes to help their country’s economy.
- Some drawbacks 😟
- Taxes may discourage people from working hard.
- The way governments impose taxes can be unfair.
- People and businesses may try to avoid paying taxes.
- People have less money to spend on goods and services.
- And this is not good for businesses.
Source: Britannica Kids