It also refers to the hard work done by working class and middle class people that pays social security and income taxes to the federal government. This is the work that keeps our society functioning by paying for schools, roads, hospitals, and other basic life necessities that the free market has failed to provide in an equitable and socially responsible manner.
James: It pays the taxes.
John: What do you think of the wealthiest corporations in the world?
James: Not so much ...
Jane: How would you describe the labor of the people?
Jenny: It pays the taxes.
Jane: How would you describe the capital of the elites?
Jenny: Derived from the taxes paid by the people.
Due to the increase in taxes "It pays the taxes" takes the place of "It pays the bills" while it takes a second job or additional income to actually pay the bills.
"It's going ... it pays the taxes. I'm looking for a part-time job now to pay the bills"