Federal taxes are collected from individuals and business alike and are mandatory. This is how the government gains its operating funds. The Canadian government began collection in 1917 at the end of World War one to cover the debt of our inclusion in the war effort. Understandably debt is a part of life and governments are no more immune to debt than any citizen.
In 2011-12 the Canadian government expenditures exceeded $217 billion. All of this came from taxes. The distribution of this amount went to the territories and provincial authorities at a rate of $0.59 to the dollar. Regardless of where, exactly, the tax dollars go, running a government with 130 plus offices is a costly venture as well as being necessary. While people tend to complain about the amount of taxes that are necessary, they remain the root cause for the level of lifestyles that the people of Canada choose to lead.