Taxation is a key tool in raising revenue for government spending from "summary" of Public Finance by Harvey S. Rosen
Taxation plays a crucial role in funding government spending. Without tax revenues, governments would struggle to finance essential public services such as education, healthcare, infrastructure, and national defense. Taxation is the primary means by which governments raise the funds necessary to meet their expenditure obligations and fulfill their policy objectives. Governments levy taxes on individuals, businesses, and other entities to generate revenue. Taxes are mandatory contributions imposed by the government on its citizens and residents, with the proceeds used to finance public goods and services. The tax system is designed to ensure a fair and equitable distribution of the tax burden among the population. The collection of taxes enables governments to address market failures, provide public goods, reduce income inequality, and promote economic stability. Tax revenues are used to finance a wide range of...
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