In free societies, the goals of government have been to protect individual freedoms and to promote the well-being of society as a whole. In our country, governments levy several different types of taxes on individuals and businesses. The Federal Government relies mainly on income taxes for its revenue. State governments depend on both income and sales taxes . Most county and city governments use property taxes to raise their revenue.
Consumers are free to decide how to spend or invest their time and money.
The goal of producers is to make profits by satisfying consumer demand. Open competition among producers usually results in their providing the best quality of goods or services at the lowest possible prices. The free enterprise system does not produce all the services needed by society. Some services are more efficiently provided when government agencies plan and administer them. Two good examples are national defense and state or local police protection.