As said OP, government doing many useful things for people on money, what they getting from taxes. Just because of taxes, we have free medicine and free education, also Paying the salary of government employees and more. But the main problem, that people can't check on what their taxes going, so there would be useful to integrate blockchain in this system.
But the main problem is that how they can check their taxes because government will say that taxes are going to social development, so there are many works doing by taxes and that's why poor people are getting a lot of facilities and they are going to better life, so that's why people are happy to pay taxes.