Funds provided by taxation are to be used by the state and its functional equivalents throughout to carry out many functions. Some of which include expenditures on the enforcement of law and public order, protection of property, economic infrastructure (roads, legal tender, enforcement of contracts, etc.), public works, social engineering, the operation of government itself and defence. The government will use taxes to fund welfare and public services. These services will include education systems, health care systems, pensions for the elderly, unemployment benefits, and public transportation. Energy, water and waste management systems also make common public utilities.
The nation's tax system is as often a reflection of its communal values or/and the values of those in power as to create a system of taxation, making choices regarding the distribution of the tax burden as to who should pay taxes and how much they should pay and how the taxes collected should be spent as in a democratic nation where the public may have elected some one, put in charge of establishing the tax system. These choices should reflect the type of community that the public and/or government wishes to create.
The resource collected from the public through taxation is always greater than the amount which can be used by the government. The difference being compliance costs, including those examples for the civil servants costs and other expenses incurred in complying with rules, tax laws and other legislation.
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