Final answer:
The government utilizes taxation and government borrowing to gather funds for providing services to the public, including the poor, and to finance other public goods. Taxes are the primary source of revenue, and the government also issues bonds to spread the cost of long-term projects across generations. Redistribution is another way the government can support lower-income individuals.
Step-by-step explanation:
The government uses taxation to generate revenue in order to provide services for the poor and public goods and services to the population. Taxes pay for a wide array of government services, including military, police, education, infrastructure, Social Security, and much more. There are several types of taxes, such as income tax, corporate tax, sales tax, and tariffs on imports. Government borrowing is also a strategy used to finance spending on projects and services, where the government sells bonds that are paid back over time. This way the costs for long-term projects are spread over future generations, which is considered fairer since they too will benefit from these projects. Moreover, the government participates in redistribution of income by taking from those with higher incomes and providing income to those with lower incomes through various social programs.