A taxpayer is an individual or entity that is obligated to make payments to municipal or government taxation-agencies.
The term "taxpayer" often refers to the workforce of a country which pays for government systems and projects through taxation.
For tax purposes, business entities are also taxpayers, making their revenues and expenditures subject to taxation.
Capital gains taxes are those paid on any profits made from the sale of an asset and are usually applied to stock and bond transactions.
User fees are taxes that are assessed on a wide variety of services, including airline tickets, rental cars, toll roads, utilities, hotel rooms, licenses, financial transactions and many others.
The money the federal government borrows to cover the budget deficit is what creates the national debt.
The government spends money for a variety of reasons: reduce inequality ("safety net" programs), provide public goods (fire, police, national defence), provide important public services like education and health (merit goods), debt interest payments, transport and military spending.
[2] The "safety net" programs are initiatives that give extra financial support to the elderly, unemployed, disabled and the poor.
The federal government spends its money in four major ways: direct payments, grants, contracts and insurance.