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Education·22 January 2026·4 min read

Taxes — the price of living in a society

No one loves them, but they build roads, schools and hospitals. How they work, in short.

Taxes — the price of living in a society
Image: domeniu public · Wikimedia Commons

Taxes are the money citizens and companies give the state, so it can pay for shared services: education, health, roads, defense, pensions.

A social contract

The basic idea is an exchange: you give part of your income and receive services you couldn't provide alone. How high taxes should be and what they're spent on is one of the great debates of any society.