Does the Government use our taxes to repay foreign debt?

Answer 1

The Govt is responsible for the countries infrastructure and public services such as hospitals schools etc. In order to pay for these things it raises money through taxes. There are instances where the Govt borrows money to pay for major overhauls of these same facilities and also other major infrastructure/development work. Taxes are public money and go into the Federal Govt coffers from where some gets distributed to the states for their health systems and other public works, some is retained for allocation to the Federal equivalent of such expenditure and I imagine that if there was and excess then the govt would look at paying off its debt which is a sensible thing to do. At the end of the day the only way that a govt can raise money is through taxes both on businesses and individuals and if it couldn't use that money to pay off debt then the country would end up in a garbage can.

Answer 2

no, taxes are NOT used to fund anything. Taxes are to drain the economy of excess spending power. Foreign debt is paid off with new money.
Dont get confused between a federal govt and a state government - Federal govts create their own money and can never go broke if their debt is in its own currency.

Answer 3

Yip - the borrowings they have made in times of deficit are repaid out of taxes (the Governments main income)