What is the primary purpose of taxes?

The primary purpose of taxes is to fund government expenditures and services. This function is crucial as taxes provide the necessary revenue for various public services such as infrastructure development, education, healthcare, defense, and welfare programs. Through taxation, governments can finance projects that benefit society as a whole, ensuring that the essential functions of governance and public services are maintained.

While regulating trade can be a consequence of specific tax policies, it is not the primary objective of taxes. Taxes do not inherently create job opportunities; instead, they enable government investment in areas that may foster job growth indirectly through better infrastructure or educational services. Regarding wealth distribution, while tax policies can influence income distribution, limiting wealth distribution is not a fundamental goal of taxation; rather, taxes are primarily aimed at raising funds for public purposes.