Historically, taxes were invented to feed the army. A leader didn't need taxes to pay for things. They could just point at local blacksmith and demand a new spear. But to sustain an army you need a lot of food. The answer is to give soldiers money to buy stuff and demand the money back from the population.
These days a lot depends on what kind of society you have. An extractive society has a strongman as leader and everybody is involved in digging stuff out of the ground. Not much is giving back to society as everybody is just a replaceable pair of hands.
Societies where people's mind is your resource because you design and make stuff, the situation is different. For people to do their more complex work you need education, healthcare, nice neighborhoods.
How taxes are used reflects on where you're going as a society.
