There are basic services that virtually everyone needs. Many of these are provided by a government. Others are provided by corporations. In any case, those who provide the services must be paid. This chart shows where the money must come from.
Services provided directly by a government - whether federal, state, or local - are paid for by taxes. Money from taxes pays the government employees - from soldiers to teachers to IRS employees.
Some services can be provided directly by a private company. When you pay your electric bill each month, chances are you're paying a private company. Same with your cable or internet bill.
In many cases a government pays a company to provide a service. For example...
o State governments hire construction companies to build and maintain roads.
o A school district pays a charter school that hires its own teachers.
In these instances, money from taxes pays the companies. That money typically is greater than the companies' cost to provide the service. The company keeps the difference as profit.