What is the purpose of taxation and how are taxes levied and collected?

The purpose of taxation is to generate revenue to fund services, infrastructure, and other programs within a local government such as Washington. Taxes are levied and collected by the local government in order to collect the resources necessary to provide these services. The local government uses the money collected by taxation to pay for public services such as public schools, libraries, police, and fire protection, public transportation, and many other essential services. Taxes are determined by the local government through the process of setting a budget for the upcoming year. In this process, each local government department provides an estimate of how much they need to operate. The local government decides how much revenue is necessary to meet their total budget and taxes are then determined at a rate that will generate enough revenue to meet the budget. This rate is then applied to the property values of the area. Taxes are collected in a variety of ways depending on the local government. They may be collected in property taxes, occupation taxes, sales taxes, or income taxes. Property taxes are collected annually and are based on the assessed value of the property. Occupation taxes are a form of licensing fee to practice a profession in the local government area. Sales taxes are collected by businesses when customers purchase goods or services. Income taxes are collected from incomes earned by individuals and businesses. Local governments may also choose to have user taxes, such as for utilities, which are taxes collected from those using the services of the local government.

What is the purpose of taxation and how are taxes levied and collected?

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