Funding for schools Education provides broad public benefits and should be made available to all eligible citizens of a country regardless of their degree of affluence Under such a system it is necessary for education to be financed by the government given its capability of collecting resources from the private sector and distributing them equitably among institutions in the public sector Government through taxation produce most educational services consumed in the United States Taxation is a system of transferring money from the private sector to the public sector of the economy Federal education funding is distributed to states and school districts though a variety of formula and competitive grant programs The public institutions of the nation are almost completely dependent on this method of obtaining funds for their operation Brimley Verstegen and Garfiled 2016 have reported that a good tax system should include the following features 1 All citizens should pay some tax 2 Taxes should be fair 3 Taxpayers should be left in the same relative financial position to one another after taxes are paid and taxes should not influence behavior