Taxes are one of the ways that governments raise money for public projects (like building new roads or hospitals). The government uses the money it has received to accomplish a variety of economic goals, such as changing the levels of aggregate demand. To promote economic equality and lessen income inequality, a government may redistribute funds through taxation. To pay for its operations and services through taxation, the government receives contributions from individuals and businesses. Public infrastructure, which encompasses everything from schools and hospitals to roads and defense systems, is powered by financial resources. A number of factors can be used to classify or categorize taxes, including their method of collection, how they affect the distribution of income, and the types of goods or sources of money they apply to.
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