by 
The Curious Bag
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Governments levy taxes as a means to raise revenue from its citizens in order to pay for various operating expenses. For most governments, taxes are the leading source of revenue.
Expenses
Most national governments use tax revenue to pay for expenses such as keeping a standing army for protecting the country from foreign invaders or providing services such as health care.
Interest Payments
If the government carries a debt, the tax revenue helps to pay off the interest that accrues on the debt so the government does not have to default on the debt.
Protecting National Interests
Many governments impose taxes on imported goods, also known as tariffs, to give goods made in the country a competitive advantage against foreign imports.
Altering Behaviors
Governments may also levy taxes as a means to encourage or discourage certain behaviors. For example, to reduce smoking, the government may impose a high tax on cigarettes.
Types
Taxes can include personal and corporate income taxes, sales taxes and property taxes.
Source:
Tax Policy Center: How Does the Federal Government Spend Its Money
U.S. Government Printing Office: Budget of the United States
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