We paid taxs to the system as we can pay taxes to the government. Taxes fund the military and other sectors that focus on helping people. money from that are going for creating some new perspective for us.
If you are a national of Dubai, you do not need to pay taxes for in Dubai, taxes amount to only one percent of its total GDP. They have good policies due to which their living standard has improved a lot and this is why people pay tax.
Taxes collected by the government are used to improve the living standard and only then you can say that the economy is growing. Moreover, countries like Sweden and Norway charge high taxes and in turn give free education to all, cheap health facilities and excellent infrastructure.