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Economies have several types of businesses, such as agricultural, manufacturing and service. Agricultural and manufacturing businesses are self-explanatory. Service business are ones that provided services like telephone, sales, medical and the like to the economy. A country's economy is called a service economy if its businesses are predominantly service oriented as opposed to agricultural or manufacturing oriented. The US has more businesses that provide services to the public than farming or manufacturing businesses, therefore it is a service economy.
The president runs the executive branch of the US government. This branch carries out and enforces the laws and includes all the government agencies that provide all the many the government services.
One of the purposes that may make the congress to impose a tax is to increase the revenue of the government. When the revenue is increased, the federal government is able to provide the basic services to its citizens.
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