Final answer:
The tax authority collects money through taxation, and the government needs the money to operate, making the correct answer to the question d) Tax authority; government. Taxes are the main source of revenue for governments to fund services and are managed by bodies like the IRS in the United States.
Step-by-step explanation:
The entity that is in charge of collecting money from its country's citizens is the tax authority, while the entity that needs the money to operate is the government. Therefore, the correct answer to the question is b) Tax authority; treasury, but with the understanding that the treasury is part of the government that deals with the financial matters of the state, this choice is not entirely accurate. For a completely accurate answer, the correct pairing would be d) Tax authority; government.
Taxes are a vital mechanism for governments to generate revenue. The taxation system is essential because it represents the primary source of government income, which is necessary to finance various government expenditures and provide services such as military, police, education, infrastructure, and social welfare. The Internal Revenue Service (IRS) is the institution responsible for tax collection in the United States, whereas the appropriation of these funds is carried out through processes established by Congress.