Federal taxes are taxes that an individual is obliged to pay to the national government to sustain the country’s need for commodities and services. Individuals are bound to pay their contribution because it helps the national government fund its many programs. Most people find paying taxes to be very burdensome. Because of the tremendous effort that each payer has to put out in order to earn money, many demand that they know where federal taxes go.
The most challenging job of the government is probably budgeting the money collected from federal taxes. During the past year, the U.S. government spent approximately $3.5 trillion which is equivalent to 24% of the country’s GDP. About $2.2 trillion was supplied by federal taxes while the other $1.3 trillion was financed by borrowing. Taxpayers may be a bit surprised to know that the majority of the federal taxes are invested in senior programs. Senior programs that funds social security of retirees are allocated with 39% of the total federal budget.
Spending on defense generally guarantees for the nationwide safety and protection of the United States. It funds the military and pays for the Pentagon. The defense department uses around 20% of the federal taxes. An additional 17% of the federal taxes are allotted to welfare. Poor people are allotted 17% of the total federal taxes. Examples of welfare programs include Medicaid, food stamps for groceries, housing assistance and insurance payments for the unemployed.
Primary, secondary and special education services are provided by the department of education. Higher education and other training programs are also given funds to improve employment in the future. Approximately 3% of the government budget is used on education programs. Transportation spending which accounts for 3% of the budget is used to build roads and bridges. It also helps maintain airports in local areas and maintain waterways and barge canals.
The remaining budget is allocated to law enforcement, international activities, environment, homeland security, science, community development, agriculture and other miscellaneous programs. Each of these program utilizes on;y 1% of the federal taxes.
The main function of the government is figuring out priorities and making judgments. The challenge for the government is to reach agreement on a budget that serves the best interest of the nation and to make sure that federal taxes paid by the citizens are spent in the wisest possible way.