How does the government pay for roads, schools, and emergency services?

How does the government pay for roads, schools, and emergency services?

A. They are funded through non-profits

B. They are funded through taxes.

C. They are funded through charitable donations.

D. None of the above

Answer: B. They are funded through taxes.

Basic amenities such as roads, schools and the emergency services are mainly paid by taxes. Through this system of organization, people can combine their resources and work together to finance important services for the entire society. For instance, income taxes levied from individuals and companies depending on their income play a major role in government revenue. Another essential source of revenues is property taxes, which are usually imposed at the local level for instance for financing local schools or already aforementioned infrastructure. Another type of tax is the sales taxes which are charged whenever an individual buys a product or relieves a certain service.

Cigarette taxes are in some states focused a little more on education for example and the fuel taxes are typically targeted for roads. For example, in the United States, the Highway Trust Fund mobilises funds from federal gasoline taxes to finance highway construction and repairs. Public schooling is financed through state and local governments, a major part being funded by local property taxes, state income taxes and federal aid. These services include police stations, fire stations, and ambulance services that operate with funding that is either through local tax or other state/federal grants. This funding strategy is based on taxation, whereby the provision of these important services is extended to all members of society despite their riches or members’ financial capacity, thus fostering equity and social justice. However, as to the combination of taxes and the division of cash resources, it is possible to observe the crucial differences between certain countries, states and municipalities.