What is income tax used for? If you’re tired of paying taxes, like most Americans, and are wondering this question, you’re not alone. So, just what is income tax used for?
The government provides many services for citizens of the U.S. To be able to provide these services, they must have an income. That’s where your tax dollars come into play. The federal government uses your tax dollars to pay for the goods and services they provide to the community. Just what are these goods and services? They include:
Medicare and Medicaid
Medical research
Public school funding
Defense funding
Roads
Police protection
Fire protection
Public libraries
Bank regulation
Food inspection
According to the U.S. Government, personal income tax makes up 26% of the U.S. income and your income tax is used in the following ways:
34% – Medicare, Medicaid, social security, retirement benefits
22% – National defense, veterans, foreign affairs
2% – Law enforcement
5% – Net interest paid on debt
15% – Physical, human and community develop
21% – Social programs
Of course, the government couldn’t possibly pay for all of these services with your income tax dollars alone. They also collect money by taxing corporations, social security, Medicare, unemployment, and other retirement taxes, and collecting taxes on excise, customs, estate, gift and other miscellaneous taxes.
Are These Statistics Correct?
Not everyone agrees with these statistics. There are many groups in the United States that say these charts are incorrect and purposely distorted by the U.S. Government to misrepresent how your income tax is used.
According to WarResistersLeague.com, the U.S. government spends 54% or $2,650 billion of our tax money on the military and 46% or $1,210 billion on non-military spending. This is broken down into the following categories:
Current Military – 36%
Past Military – 18%
Human Resources 30%
General Government 11%
Physical Resources 5%
If you’re interested in reading more how this group believes your income tax is used for http://www.warresisters.org/pages/piechart.htm dollars are really spent, visit www.WarResisters.orghttp://www.warresisters.org/pages/piechart.htm.
What is Income Tax Used For? Learn More
To learn how income tax is usedhttp://www.whitehouse.gov/omb/budget/ and the plans for its use for 2011, check out www.Whitehouse.gov. Here, you’ll find the budget for 2011 and the President’s budget for each individual state. If you’re wondering what income tax is used for in your state, this is the place to check. You’ll find a breakdown for tax cuts and how much of your income tax dollars will be spent on education, infrastructure, developing jobs, energy, and small businesses.
Understanding what income tax is used for gets complicated when trying to understand all the charts, graphs and budgets supplied by the U.S. Government. Use this information as a starting point to understanding what your income tax is used for and then learn more by visiting the above-mentioned sites.
