Final answer:
Taxes paid to government agencies are deposited into separate Treasury accounts. These accounts are used by the government to manage the tax revenue and fund various services and obligations outlined in the government's budget.
Step-by-step explanation:
Money used to pay taxes to government agencies is deposited into separate Treasury accounts. Therefore, the correct answer is (b) Treasury. When we pay our taxes, whether it's to the local, state, or federal government, the funds are directed into treasury accounts, where the collected tax revenue is managed and allocated. These accounts are critical for the operation of government services such as military, police, education, and infrastructure. All levels of government create budgets to outline expected revenues and planned expenditures, which can invariably change due to policy decisions or unexpected events.
The budget and revenue flow involve mandatory spending, which is based on established laws, discretionary spending that is determined annually by Congress, and payments made on national debt. With the continual need for revenue to provide goods and services, all members of society share the responsibility to contribute to government's ability to raise funds for collective benefit.