Question - What does the government do with tax money?

Answered by: Marilyn Reed  |  Category: General  |  Last Updated: 28-06-2022  |  Views: 960  |  Total Questions: 14

The federal taxes you pay are used by the government to invest in technology and education, and to provide goods and services for the benefit of the American people. The three biggest categories of expenditures are: Major health programs, such as Medicare and Medicaid. Social security. The majority of tax dollars helps to fund defense, Social Security, Medicare, health programs and social safety net programs such as food stamps and disability payments, along with paying off interest on the national debt. Governments make direct purchase of goods and services. The federal government, for example, buys guns, bullets, tanks, and uniforms, etc. and pays soldiers to supply the national defense. Governments also make “transfer payments” such as welfare, Social Security, Medicare, Medicaid, and unemployment insurance. The money you pay in taxes goes to many places. In addition to paying the salaries of government workers, your tax dollars also help to support common resources, such as police and firefighters. Tax money helps to ensure the roads you travel on are safe and well-maintained. Taxes fund public libraries and parks. In the military, the federal government generally only taxes base pay, and many states waive income taxes. Other military pay—things like housing allowances, combat pay or cost-of-living adjustments—isn't taxed. You will still need to pay estimated taxes, but you'll need to manage those payments yourself.

https://www.cbpp.org/research/federal-budget/policy-basics-where-do-our-federal-tax-dollars-go

The federal government collects taxes to finance various public services. In fiscal year 2017, the federal government spent $4 trillion, amounting to 21 percent of the nation's gross domestic product (GDP). Of that $4 trillion, over $3. 3 trillion was financed by federal revenues.

https://www.warresisters.org/us-military-spending

U. S. Military Spending. Historically, military spending has been the single largest portion of Federal Funds budget. Since World War II, the percentage that goes to the military — current and past spending — has varied from 45 to 90 percent. Income tax money goes only into the Federal Funds part of the budget.

https://prospect.org/economy/tax-dollars-really-go/

Community and regional development: 2 percent. The Centers for Disease Control, the National Institutes of Health, and rural health clinics: 5 percent. Food stamps, energy assistance, child care, other income security: Just 6 percent.

https://www.mercatus.org/publications/government-spending/where-does-government-get-money-it-spends

The chief way the government gets the money it spends is through taxation. Figure 1 shows the relative sizes of sources of federal government tax revenues. Forty-five percent of federal tax revenue comes from individuals' personal income taxes. Another 39 percent comes from Social Security and Medicare withholdings.

https://www.govinfo.gov/features/budget-fy2020

The Budget of the United States Government is a collection of documents that contains the budget message of the President, information about the President's budget proposals for a given fiscal year, and other budgetary publications that have been issued throughout the fiscal year.

https://www.thebalance.com/why-do-we-pay-taxes-4067684

We pay taxes because the federal, state, and municipal governments enact tax laws. That tax revenue pays for a variety of government services. The federal government collects about the same as the state and local governments combined.

https://www.irs.gov/newsroom/easy-ways-to-pay-taxes

Here are some ways to make payments: Direct Pay. Taxpayers can pay tax bills directly from a checking or savings account free with IRS Direct Pay. Credit or debit cards. Taxpayers can also pay their taxes by debit or credit card online, by phone or with a mobile device. Installment agreement.

https://www.businessinsider.com/biggest-things-your-income-taxes-pay-for-2013-4

About 22. 5 percent of income tax revenue goes toward health care programs. The two big expenditures are for Medicare and Medicaid, but additional amounts go toward health research, food safety, and public health services and disease control.

https://www.quora.com/What-is-the-importance-of-taxation

The concept of taxation is also important to businesses because governments can fund this money back into the economy in the form of loans or other funding forms. Taxes help raise the standard of living in a country. The higher the standard of living, the stronger and higher the level of consumption most likely is.

http://lafayettejeff.org/common/pages/DisplayFile.aspx?itemId=721965

Local governments manage their money in accordance with priorities set by elected local government officials. Local governments create budgets and collect taxes just like the federal government.

https://www.vice.com/en_us/article/8gx3v4/i-asked-an-expert-what-would-happen-if-no-one-paid-their-t

But if no one filed his or her income tax, that would mean a huge increase in tax evasion, and much less money for the federal government, which already runs substantial deficits. So the government would have to borrow a lot more money, and the spending would have to go way down.

https://www.investopedia.com/terms/t/taxation.asp

Taxation is a term for when a taxing authority, usually a government, levies or imposes a tax. The term "taxation" applies to all types of involuntary levies, from income to capital gains to estate taxes.

https://www.usatoday.com/story/money/personalfinance/2014/01/04/taxes-americans-pay/4307825/

Here are seven ways Americans pay taxes. Income taxes. Income taxes can be charged at the federal, state and local levels. Sales taxes. Sales taxes are taxes on goods and services purchased. Excise taxes. Payroll taxes. Property taxes. Estate taxes. Gift taxes.