The Government's Sources of Revenue and How Taxes are Spent

The Government's Sources of Revenue and How Taxes are Spent
Name
Institutional Affiliation The Government's Sources of Revenue and How Taxes are Spent Turner (n.d.) defines taxes as the shift of resources from the private sector (households and businesses) to the public sector (government and the governed). Taxes are mainly in the form of money. There is a mutual relationship between the government and the governed. Electorates enact the government and entrust it with the hope that the government will use its resources to meet the people’s needs. The government uses the money it taxes from the public to provide services to the public. The government does not own any money. It collects taxes from the public and uses those funds to provide services to the governed. The government has several sources of revenue. The first source is paid as you earn (PAYE) system. This is where the government deducts a percentage of money from employees (Becker, 2017). The value-added tax (VAT) system is also another source. Every country has a certain percentage of deductions it makes on goods and services that the public consumes. VAT is applied on basic commodities and services such as transport. The...