Taxes allow governments to provide goods and services by generating revenue. The US Constitution grants Congress the power to collect taxes to fund the common defense and general welfare. Federal taxes must be uniform across states and exempt religious activities. Taxes include income, sales, property and corporate taxes. Governments use tax revenue along with borrowing to fund expenditures through annual budgets. Fiscal policy aims to influence economic growth through taxing and spending decisions.

69. Arthur Laffer used the Laffer Curve to illustrate this concept.

97. Monetary Policy Tools of the Fed: What do they do and how does it work.

109. This is the most used tool for money creation.