Question

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Write two sentences to explain how taxes support the economy.

Answer 1

Taxes are mandatory contributions levied on individuals or corporations by a government entity—whether local, regional, or national. Tax revenues finance government activities, including public works and services such as roads and schools, or programs such as Social Security and Medicare.

Explanation:

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Answer 2

Taxes support the economy because they provide funds to the government so it can pay for new highways and public buildings. The government can pay public employees, teachers, the army, social services and many other things with our taxes.