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Originally Posted by Zairak
The general idea is that the government is attempting to provide additional support to citizens with concerns and responsibilities that other citizens lack. It's the entire purpose behind tax deductions, it's a way to identify which citizens should receive what special considerations. It was likely chosen to be done in this manner so that a single organization could process it instead of several smaller organizations or aid programs to give help to citizens with said special responsibilities.
Some examples of special responsibilities, for instance, and in reference to your last point, include raising children.
In short, it's just a more convenient way for the government to perform its duty of caring for its citizens. It doesn't hurt that the idea of getting tax money back appeals to quite a lot of people.
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I'm more concerned about where the money for those "services" is coming from.