Give 3 functions of tax in the Philippines. Explain each function in 5 sentences.

1. To increase income to fund government budgets

The basic function of tax is to collect income to fund government spending.
Governments may provide a wide range of public goods and services with reliable tax
income. This includes maintaining security, creating social infrastructure, and providing
welfare programs. Most governments rely heavily on tax to pay important services and
facilities for their people. Of course, income will not always be used for such government
purposes.

2. To assist the government in funding economic growth projects

Another function is to assist the government in supporting programs that promote
economic expansion. More investment in information and communications technology is
possible thanks to its financial frameworks. It’s a fundamental way for governments to
generate tax money. Also through the collection of taxes and levies, they are able to
finance investments in infrastructure. It also finance human resources, and the provision
of services for citizens and businesses.

3. To distribute the income and wealth in society

Governments mostly use the tax system to transfer revenue to lower-income
people. To achieve this goal, a progressive income tax system that applies higher average
and marginal rates on higher incomes is frequently utilized. Because of this contribution,
taxes encourage economic growth, which in turn boosts the nation's economy by rising
living standards and boosting employment growth. Regular public services and social
programs including health care, assistance for the aged, public education, public transit,
fire protection, and park upkeep are funded in part by taxes. Programs that guarantee that
the advantages of economic growth are more fairly divided, assisting lower-income
people and reducing wealth gap, are funded in part by taxes.