You may not be noticing it but a big percentage of your income is going to taxes. The truth is, average families are paying over 12,000 dollars in federal income tax annually. There are even many YouTubers who are buying cheap YouTube views explaining this. You may watch such video and be surprised where your taxes go.
Where Exactly Your Tax Money Goes?
Being a taxpayer, you’re handing over the money in order to keep essential federal programs operational. If you’ve been curious on where your tax money goes, then it is best to read the entire content of this article.
Your taxes are being used in funding government health programs including but not limited to:
- Children’s Health Insurance program
- Medicaid and;
Together, the said programs contribute to approximately 28 percent of the federal budget.
Your taxes are helping to pay for the national defense as well as security-related programs of the government. Funds under such category are supporting the DOD and also, the cost of international military programs.
Believe it or not, there are more than 60 million Americans who have received Social Security benefits back in 2016.
The beneficiaries of such include disabled workers, spouses of deceased workers, surviving children and retired workers.
Interest on National Debt
It is not a secret that every government is not exempted from paying its debt. Truth is, the national debt is now over 17 trillion dollars and federal government depends on its taxpayer’s money in making the interest payments on funds borrowed.
In the US, there are around 22 million veterans and income taxes are helping to cover for their medical care, education programs, disability payments and pensions. The government is funding too the operation of VA clinics and medical facilities.
Agricultural and Food Benefits
Under this category, this consists of assistance programs similar to the National School Lunch Program, Federal Crop Insurance and the Supplemental Nutrition Assistance Program.
There are several types of education programs that the government is funding using tax money just like elementary and secondary education initiatives, student aid and work study programs.