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1. If the government does not need taxes and bonds to finance its expenditures, why then...

1. If the government does not need taxes and bonds to finance its expenditures, why then does it levy taxes and sell bonds? What is the role of taxes and government spending?
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Answer #1

The notion that the government doesn't require taxes to finance expenditures is absolutely false because of the fact that the tax actually get to generate revenue and this is used for the expenditure purposes where it can be mentioned that selling bonds and living taxes can get to generate revenue discourage negative behaviour as well as redistribution of wealth by reducing economic inequality and this is the role of taxes in the government economy and spending

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